China's H1 2015 Online Insurance Market Up 260% YoY
Ebrun, 8/24/15
The Insurance Association of China (IAC) recently published its "2014 Online Insurance Industry Development Report" and H1 2015 operations data for the online insurance industry.
The report says that the online insurance market has been developing rapidly, and has become an important factor driving growth in total Chinese insurance premiums. During H1 2015, revenue from insurance premiums sold through online channels in China reached RMB 81.6 bln, an increase of 260% YoY, constituting 4.7% of overall industry premiums. This revenue is already nearly equal to the total premiums from online insurance products for 2014, and has contributed 14% to overall growth in industry premiums.
IAC revealed that online property insurance generated premiums of RMB 36.32 bln, up RMB 14.8 bln (69%) YoY, coprising 8.5% of total property insurance premiums. Online life insurance generated premiums of RMB 45.2 bln, an increase of RMB 35 bln (343.4%) YoY, nearly RMB 10 bln more than total online life insurance premiums for 2014. Online life insurance premiums exceeded online property insurance premiums for the first time, increasing to 3.5% of premiums collected by life insurance companies, and contributing more than 70% of growth in online insurance premiums.
As of June 2015, 96 Chinese property and life insurance companies operated online insurance businesses, 11 more than at the end of 2014. This number represents more than half of the total property and life insurance companies operating in China.
The report also shows that total revenues from premiums for Chinese online insurance products in 2014 was RMB 85.9 bln, an increase of 195% YoY, and an increase of 2,600% over 2011. The percentage of insurance industry premiums attributable to online insurance products increased from 1.7% in 2013 to 4% in 2014, and online insurance contributed 18.9% to overall insurance industry premium growth. Differentiating by type, 2014 online property insurance premium revenues were RMB 50.57 bln, an increase of 115% YoY. Revenue from online life insurance premiums was RMB 35.32 bln, an increase of 550% YoY, with a 3-year average annual growth rate of 225%.
The report forecasts that in the the future, insurance will be fully integrated with the Internet, and the business model will change from product-centric to customer-centric. A trend towards cross-sector integration is increasingly apparent, and the insurance industry will gradually penetrate new business areas.
Keywords: national statistics Internet revenue Insurance Association of China online insurance H1 2015 market size growth rate
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