Figures released by the China Insurance Regulatory Commission (CIRC) show a surge over the past half decade.
Following five years of tremendous surges in growth in the Chinese insurance market, premiums from that country have now brought it up to the third place spot among the largest marketplaces in the world.
This was shared as a part of a report produced by the China Insurance Regulatory Commission (CIRC).
The third place insurance market position was actually achieved in 2015, though the figures were only just tallied by the CIRC. The figures from the commission showed that over the past five years, there has been a dramatic surge in the insurance premiums collected in China. The annual growth rate has been an estimated 13.4 percent, while premiums rose by about $197.9 million (1.3 trillion yuan).
The insurance market is now the third largest in the world, in the second largest global economy.
The total assets of the Chinese insurance industry have more than doubled from 2010 through 2015, when they increased from 5 trillion yuan to 12 trillion yuan. Industry experts have linked this massive rise to the expansion of the economy in the country, as well as the improvements being experienced in the quality of living standards among the population.
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As a result of this growth, insurance companies have been experiencing one year after another of tremendous growth and profits throughout China. Across the entire insurance sector, last year, the profits reached an estimated 282.4 billion yuan. Comparatively, in 2010, that figure had been a much lower 83.7 billion yuan.
At that time, China had been the sixth largest insurance market in the world. If the CIRC data is correct, that would mean that it took the country only five years to climb three spaces in the ranks toward the largest national insurance industries. It is also interesting to note that last year, China’s contribution to the global industry growth represented a tremendous 26 percent. Many experts do not believe that this rate of growth is showing signs of slowing down throughout 2016. As regulations regarding foreign insurers ease in China, many large international players are already working hard to make sure they will be a part of this staggering growth.