According to the latest report released by the chinese institute for re-research studies, china's online finance news bulletin of 15 december (journalist guo weizheng), the average annual increase in global premiums is expected to be 2. 2 per cent in 2024-2025, up from the average of 1. 6 per cent in the last five years (2018-2022)。
At the same time, the report notes that return on investment becomes an even more important component of industry earnings. Over the next 10 years, it is expected that the size of global savings premiums will increase by $1. 7 trillion to $4 trillion. As a result, the growth of the life insurance industry will increase significantly over the next 10 years。
For chinaInsuranceIn the market, rri expects china's property insurance market premium to grow by more than 8 per cent (nominal growth) in 2023. China's personal risk market, which is expected to continue steadily in the coming years, is projected to grow at an annual rate of about 8. 4 per cent in 2024/2025。
In addition, the report anticipates that 52 per cent of the global premium increase in 2024-2025 will come from emerging markets, including china, which remains the engine of growth in emerging markets. China will account for 68 per cent of the additional premium for the next two years。
Car insurance and agro-risk insurance play an increasingly important role
Rri expects china's property insurance market premiums to grow by more than 8 per cent (nominal growth) in 2023。
As the highest share of the property risk market, it is expected that insurance premiums will grow by about 6 per cent throughout the year, that the impact of comprehensive vehicle insurance reforms will be significantly diluted and that overall market performance will be stable, providing a solid foundation for the growth of the overall property risk market. Among them, the rapid development of new energy vehicles has led to the release of consumer replacement needs and has supported the sale of vehicle insurance。
Non-vehicle insurance operations will continue to show a high growth trend, as will agricultural insurance, liability insurance and property insurance. Among them, agricultural insurance continued its high growth since 2008, with cumulative premiums increasing by 19 per cent in the first 10 months of the year. It is expected that double-digit growth will continue in the next two years, against the background of the government's drive to increase the efficiency of agricultural risk. Moreover, in the first 10 months of the year, the accumulated premium for liability insurance increased by more than 10 per cent, and insurance companies actively explored the expansion of coverage and the enhancement of service capacity。
According to the swiss chief nuclear insurance officer for reinsurance property insurance, gianfranco lot (rogian), in china and around the world, vehicle insurance remains the largest undertaking in financial insurance, and the automobile insurance industry will remain a very large line of business in the future, and the importance of property insurance will only increase。
He stated that the automobile market was undergoing a very marked transformation, especially as, with the rapid development of technology, more and more electric cars were replacing fuel cars, and that there was a great deal of data available to automobile manufacturers in the process, which would have a significant impact on the way insurance was carried out, including the setting of tariffs。
In addition, the increase in extreme weather events, such as natural disasters, including earthquakes, hail and floods, has had some impact on vehicle risk insurance, so many insurance companies have also expanded their insurance coverage to cover the risks associated with such disasters。
In the area of non-car insurance, liability insurance has grown very rapidly over the past 10 years, and this is also a dominant risk in china. At the same time, the chinese market is the largest global market for agricultural insurance and will continue to grow in the future。
Personal risk markets will continue to be stable and positive
Rri expects to benefit mainly from the sale of savings-type products, with china's personal risk market warming significantly in 2023. However, heavy-risk operations remain under pressure and medical risks continue to grow mildly。
According to the report, against the backdrop of a warmer and rising income for the population, a steady improvement in consumer confidence, an increase in the capacity of the government to provide social security, and the active promotion of supply-side reforms and product innovation in the insurance industry, china's personal risk market is expected to continue its steady upward trend in the coming years, with an estimated annual growth rate of 8. 4 per cent in 2024/2025。
President of china district of reinsurance and chief executive officer of reinsurance of china district, ivan goAccording to nzález (kong yifeng), ageing is an important theme in the chinese market and an excellent opportunity. Thus, we have the opportunity to introduce more innovative products, including “global-type” products, as well as those developed specifically for the needs of the chinese market。
The swiss chief executive officer for life and health insurance, paul murray (wise), added that this was both a great test and an important opportunity, as was the case with both sides of the coin. Therefore, higher savings, greater security, more investment in infrastructure and more relevant products and digital technologies are needed。
In addition, with regard to the construction of the three-pillar old-age pension system, paul murray suggested that insurance companies could do much in this regard, for example by introducing comprehensive health insurance with savings functions that would guarantee future health and related services. In addition, insurance companies can provide more relevant services, and future products can be more customized and refined, for example for cancer-specific safeguards, or some high-end health insurance。
In response to the downward revision of scheduled interest rates for life insurance products, paul murray (wise) stated that, overall, this was a very positive initiative that helped insurance companies to reduce pressure but also had an impact on demand. He suggested that insurance companies could actively focus on balance sheets to adjust capital management strategies to maintain solvency in a low interest rate environment. One way of managing a balance sheet that is very effective is to reinsurance, whether financial or personal, which is widely applied globally, with the belief that it will become an increasingly important tool for china in the future。
