Insurers saw robust growth in 2019, with premiums up 12.1% to RMB3.9trn ($545.3bn), compared to growth of 6.6% in 2018. Due to the impact of covid-19, year-to-April life premium income fell by 6.8%, compared to the same period in 2019. However, this could be a blip, given that China is seen to have the highest growth potential for non-affiliated life insurance opportunities among Asia ex-Japan markets over the next three years, according to 100% of fund managers surveyed by Cerulli last year. This is hardly surprising, Cerulli said, given its huge market size and relatively low life insurance penetration compared to developed North Asian markets.
China reportedly announced plans to further pave the way for foreign life insurers to set up onshore operations. Under these plans, the China Banking and Insurance Regulatory Commission (CBRIC) could allow foreign insurers to hold more than one main business license, acquire a controlling or significant minority stake (compared to the existing 15%) in a local counterpart, and run that business separately from existing joint ventures or wholly owned operations.