China's insurance assets surge to $32t

The industry represents only 7% of China's total financial assets.

The total assets of China’s insurance sector increased by 15.8% year-on-year (YoY) to $31.54t (CNY32.86t) as of March this year, data from the People's Bank of China showed. 

As of the end of March, China's financial institutions held total assets worth ~$66.93t (CNY476.49t), marking an 8.5% YoY increase. 

Breaking down the figures, the banking sector's assets reached $412.40t (CNY429.58t), an 8.1% increase from the previous year whilst the securities institutions' assets grew by 2.5% to $13.49t (CNY14.05t). 

The liabilities of these financial institutions also rose by 8.5% YoY, amounting to $417.57t (CNY434.97t).

Sector’s improvement is conducive

Accelerating the development of China's insurance industry will enhance the financial market structure, optimise resource allocation, and increase system stability, according to Li Yunze, head of the National Financial Regulatory Administration. 

Currently, insurance industry assets represent only 7% of China's total financial assets, compared to the international average of around 20%, highlighting significant growth potential.

Speaking at the Lujiazui Forum in Shanghai, Li emphasised the insurance sector's crucial role in China's modernisation. 

He noted that the industry faces a historic opportunity for high-quality development and is vital as the country builds a modern socialist society.

Li highlighted the rising demand for diversified insurance protection driven by increasing needs for the elderly and medical care. 

With the expanding middle-income group and high savings rates, there are broad prospects for growth in insurance services ranging from old-age to health insurance.

($1.00 = CNY7.26)