China’s insurance landscape in 2025: Growth, products and market trends

Desk report: China’s insurance industry generated an estimated CNY 6.12 trillion in premium income in 2025, marking about 7.4% year-on-year growth as life and health insurance continued to drive expansion amid demographic shifts and evolving risk costs.

Total premium income hit RMB 6,119,418 million in 2025, up from RMB 5,696,309.061 million in 2024, according to data compiled from the National Financial Regulatory Administration’s official figures.

Despite steady growth, insurance penetration (insurance premiums as a share of GDP) remained moderate, reaching about 4.37% in 2025, suggesting continued opportunities for market expansion compared with more developed countries.

Life insurance remains the core of China’s insurance market, buoyed by demand for protection, savings and long-term financial planning. Traditional life products and participating policies continue to command the largest share of sales. As China’s population ages and retirement planning becomes increasingly important, insurers are shifting product offerings toward annuity and pension solutions.

Health insurance is among the fastest-growing segments, boosted by rising medical costs and gaps in public reimbursement. Critical illness policies account for a significant portion of commercial health premiums, supported by reimbursement products, disability income, and long-term care insurance. Although China’s basic social medical insurance covers a large share of the population, limitations in reimbursements continue to encourage private supplemental coverage.

In the property and casualty (P&C) sector, motor insurance dominates, especially through compulsory third-party liability coverage. Commercial auto products provide extended protection, with premiums for new energy vehicles generally higher due to specialized repair and battery replacement costs.

Claims and benefit payments have risen alongside premium growth. According to NFRA’s supervisory statistics, insurance companies recorded about CNY 1.3 trillion in claims and benefit payouts in the first half of 2025, underscoring an upward trend in claims costs industry-wide.

While premium growth remains robust, insurers face ongoing challenges in underwriting discipline, fraud control, and adapting to regulatory changes. Continued demographic shifts, technology adoption in risk assessment and claims processing, and product innovation will shape China’s insurance landscape in the coming years.