China's internet insurance sector to see nearly 20% annual growth

China's internet insurance sector is poised for robust growth over the next five years, with an annual average growth rate expected to reach between 15 percent to 20 percent, according to a report released on Tuesday.

The strong growth momentum in the internet insurance sector will propel the total premiums to surpass the 1 trillion yuan ($136.4 billion) mark in the next five years, said the report, which was compiled by online insurance distributor Yuanbao Inc and the Research Center for China Insurance and Pension Finance at Tsinghua University's PBC School of Finance.

The country's internet insurance market has experienced a remarkable surge in the past decade, with its premium volume skyrocketing from 29 billion yuan in 2013 to 494.9 billion yuan in 2023, maintaining an annual growth rate of over 32 percent, according to the report.

Notably, the sector's rapid expansion can be largely attributed to the pivotal role played by online brokers, the report said.

The rapid growth of China's internet insurance sector is driving the industry toward greater coverage, enhanced protection, and improved service capabilities, said Fang Rui, founder and CEO of Yuanbao Inc.

The application of advanced technologies, such as big data analysis and precise pricing, in the internet insurance sector has helped to reduce insurance costs, making coverage more affordable for a broader segment of the population, according to the report.

By leveraging digital and smart technologies, internet insurance has also streamlined the claims procedure and improved the claims experience, ultimately strengthening the sense of security and protection for policyholders, the report added.