The domestic insurance industry reported fast and stable growth in the first half of this year, with increased risk control capacity, according to the China Insurance Regulatory Commission.
The industry secured total insurance premiums of 2.3 trillion yuan ($351.2 billion) over the six months, increasing 23 percent year-on-year. At the same time, insurance settlements totaled 578.6 billion yuan, up 9.9 percent.
Although the industry is developing quickly, the growth rate was lower than in the same period last year, the CIRC found.
Corporate property and freight insurance, which are closely connected with the macro economy, have turned around their negative growth trend, with the former achieving total premiums of 24.6 billion yuan and the latter 5.3 billion yuan.
Liability and agricultural insurance also maintained fast growth rates. The liability insurance segment increased 21 percent to reach 23.6 billion yuan in premiums, and agricultural insurance premiums grew 15.5 percent to reach 28.8 billion yuan.
Life insurance premiums hit 1.8 trillion yuan, up 26 percent.
Thanks to the stabilizing macroeconomic situation and stronger policy support, property insurance companies’ non-vehicle insurance business increased 25.4 percent to reach 168.2 billion yuan in premiums. This accounted for more than 30 percent of all property insurance business for the first time in recent years. The growth rate was 20 percentage points higher than in the same period last year.
At the same time, vehicle insurance premiums grew at a slower pace, up 9.2 percent with 359.4 billion yuan.
Ordinary life insurance, featuring long-term and stable risk control, accounted for 52.9 percent of total original life insurance premiums, 16.7 percentage points higher than the number at the end of last year.
Universal life insurance accounted for 17.4 percent of the segment, 19.45 percentage points lower than in the previous year. Participating insurance accounted for 28.8 percent, 5.04 percentage points higher than the last year.
The insurance industry has served the real economy and safeguarded people’s livelihoods, according to the CIRC, by developing new services in the agricultural insurance sector, improving quality and expanding coverage.
Agricultural insurance covered 116 million rural households in the first half of this year, with total settlement of more than 10 billion yuan, increasing 37.9 percent year-on-year. More than 10 million households that suffered from poverty or disasters benefited from these services.
The liability insurance sector focused on safe industrial production, healthcare, food safety and environmental protection, as well as other areas that concern public welfare. The sector’s total settlements hit 8.6 billion yuan in the first half of this year, up 20.1 percent.
By the end of June, the insurance industry had 1.4 trillion yuan in deposit balance, providing an important source of mid and long-term loans to support the real economy. It also provided more than 6 trillion yuan in direct financial support to the real economy by investing in bonds and equity.
The industry invested nearly 700 billion yuan in Belt and Road Initiative-related projects over the same period through bonds, equity programs and foundations.