The Geneva Papers on Risk and Insurance Issues and Practice

TABLE 7

FROM:

The Chinese Insurance Market: Estimating its Long-Term Growth and Size

Wei Zheng, Yongdong Liu and Gerry Dickinson

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Table 7. Estimates of growth rate of China's insurance industry (2006–2020) (Billion Yuan)

Average annual growth rate Conservative (GDP growth rate 6 %) Median (GDP growth rate 7.5 %) Optimistic (GDP growth rate 9 %)
  Life Non-life Total Life Non-life Total Life Non-life Total
  10.3 % 8.8 % 9.8 % 13.0 % 10.9 % 12.3 % 15.6 % 12.9 % 14.8 %
2005
 Premium3,2441,6834,9273,2441,6834,9273,2441,6834,927
 Density248129377248129377248129377
 Penetration1.8%0.9%2.7%1.8%0.9%2.7%1.8%0.9%2.7%
          
2010
 Premium5,3042,5697,8735,9752,8258,8006,6983,0919,789
 Density387188575436206642489226714
 Penetration2.3%1.1%3.4%2.4%1.1%3.6%2.5%1.2%3.7%
          
2015
 Premium8,6703,92312,59311,0054,74215,74713,8265,67719,504
 Density6132778907783351,1139784011,379
 Penetration2.8%1.3%4.1%3.1%1.3%4.4%3.4%1.4%4.8%
          
2020
 Premium14,1745,98920,16220,2697,96028,22928,54410,42738,970
 Density9714101,3811,3885451,9331,9557142,669
 Penetration3.4%1.5%4.9%4.0%1.6%5.6%4.6%1.7%6.3%

  Note: All data are in the comparable 2005 prices; health insurance and accident insurance are counted as non-life insurance; "Average annual Growth Rate" is the average of the results obtained from market exchange rate method and purchasing power parity method; Density=Premium/Population, Penetration=Premium/GDP; the population data come from the prediction for 2010 and 2020 by the National Population and Family Planning Commission of China.

  Data resources: the official website of the National Statistical Bureau; the official website of the National Population and Family Planning Commission of China; the data calculated above; calculation by authors.

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