China Insurers Report 6.2% Premium Growth Amid 7.5% Rise in Claims

Int’l Desk: China’s insurance sector delivered a mixed but overall resilient performance in the first quarter of 2026, with premium income rising steadily while claims payments increased at a quicker pace and new policies saw strong growth, according to supervisory data reported by Insurance Asia Review.

Insurance companies generated $345.0 billion in primary insurance premium income during the three months ending March, marking a 6.2 percent increase compared to the same period a year earlier. This growth reflects continued demand for protection products across life, health, and property lines as consumers and businesses seek greater financial security amid economic recovery and evolving risks.

However, insurance claim and benefit payments rose faster at 7.5 percent year-on-year, reaching $133.4 billion, which could signal mounting pressure on profitability if the trend continues without corresponding adjustments in risk management or pricing.

The number of new insurance policies written during the quarter climbed a notable 29 percent to 32.1 billion, underscoring robust market expansion and successful efforts by insurers to broaden their customer base through innovative products and digital channels.

Total assets held by insurance companies and insurance asset management companies reached $6.4 trillion at the end of March, up 2.8 percent from the start of the year.

Within this, property and casualty insurers saw their assets grow 5.9 percent to $495.0 billion, reflecting healthy expansion in that segment, while personal insurance companies recorded a 2.6 percent increase to $5.6 trillion. Insurance asset management companies posted assets of $22.9 billion, rising 4.7 percent, though reinsurance companies experienced a minor 0.2 percent dip to $128.9 billion.

Solvency levels remained comfortably above regulatory requirements, providing a solid buffer for the industry.

The comprehensive solvency ratio stood at 181.0 percent and the core solvency ratio at 131.9 percent as of the end of March, well exceeding the required minimums of 100 percent and 50 percent respectively.

Property and casualty insurers demonstrated particularly strong capital positions with a comprehensive solvency ratio of 242.6 percent and core ratio of 210.6 percent.

Personal insurers reported ratios of 170.7 percent and 118.1 percent, while reinsurers achieved 207.4 percent and 179.8 percent.

These figures highlight the sector’s prudent capital management even as it pursues growth opportunities.

Analysts suggest the faster rise in claims may stem from higher utilization of health and critical illness policies, along with payouts related to weather events and other covered perils.

Despite this, the strong new business volumes and asset growth indicate underlying momentum that could support the industry through the rest of 2026.

Insurers are likely to focus on balancing expansion with tighter underwriting standards and greater use of technology for claims handling and fraud detection.

For international observers, the data provides encouraging signs about the stability of China’s massive insurance market, though sustained claims pressure may influence investment strategies and reinsurance arrangements in the coming quarters.

Overall, the first-quarter results portray an industry that is growing while maintaining financial strength, positioning it well to navigate both opportunities and challenges in a dynamic economic environment.