Increasing digitalisation and consumer behaviour has seen a rise of online insurance in China.
Data from the Insurance Association of China showed that online insurance premiums was at CNY 366.3bn ($50.8bn) in the first seven months of 2024, a 15% y-o-y increase.
A report by insurance distributor Yuanbao Inc and the research center for China insurance and pension finance at Tsinghua University's PBC school of finance revealed that almost 84% of consumers born after 1995 chose to buy insurance online, surpassing those born after 1985 for the first time. The report further said that the proportion of consumers opting for online insurance rose from 73% in 2023 to 78% in 2024, while the offline purchase rate declined from 85% to 79% over the same period. The findings from the report also indicated that online insurance penetration is poised to surpass offline within the next two years.
Mental health concerns are also more prevalent among the post-1995 demographic class, with nearly half expressing related anxieties. The report mentioned that around 60% have purchased accidental injury or critical illness insurance for themselves.