About 200 companies have expressed interest or sought license to set up an insurance company, according to data of the China Insurance Regulatory Commission. Demand for insurance in China has surged, stimulated by the rise in disposable incomes, consumer trust, accessibility of information online and changing demographics. The number of people with health coverage rose to about 100 million last year, up from 80 million a year earlier, according to official data. In H1 2016 life insurers' premiums rose 50% YoY to CNY1.18tn and overall premiums grew 37% YoY. While high profits have led over 200 companies to express interest in licences, authorities have warned companies against deploying insurance income in unrelated businesses. Sinolink Securities predicts premium income will continue to grow rapidly for another decade.
Demand for insurance in China has surged, stimulated by the rise in disposable incomes, consumer trust, accessibility of information online and changing demographics. The number of people with health coverage rose to about 100 million last year, up from 80 million a year earlier, according to official data. In H1 2016 life insurers' premiums rose 50% YoY to CNY1.18tn and overall premiums grew 37% YoY. While high profits have led over 200 companies to express interest in licences, authorities have warned companies against deploying insurance income in unrelated businesses. Sinolink Securities predicts premium income will continue to grow rapidly for another decade.