How much will China’s insurance market grow by 2032?

Its market value could reach $1.4t in seven years.

The insurance sector in China was could register a compound annual growth rate of 8.8% from $779.22b in 2025 to $1.41t in 2032, according to Fortune Business Insights.

The market was also valued at $731.04b last year.

Growth is supported by rising income levels, improving financial literacy, and increasing awareness of health and life insurance.

The country’s ageing population is also a significant driver, with people aged 65 and older reaching 203.4 million in 2023. This is also equivalent to 14.3% of the total population, up 4% from the previous year, according to Population Pyramid data.

Whilst the COVID-19 pandemic slowed market growth in 2020, it also highlighted the importance of healthcare coverage, contributing to increased demand for health-related insurance in the following years.

Digitalisation continues to reshape the market, with providers adopting AI tools for claims management, risk assessment, and customer targeting. 

The China Banking and Insurance Regulatory Commission (CBIRC) and the Cybersecurity Administration of China (CAC) have also introduced new guidelines to address data privacy and AI governance. In July 2023, the CAC released the "Interim Measures for the Management of Generative AI Services."

Economic growth is also bolstering insurance demand. 

According to the International Monetary Fund, China’s GDP grew by approximately 5% in 2023, reflecting a broader recovery that supports consumer spending and insurance uptake.

Insurers are expected to continue investing in digital infrastructure and customised product offerings to meet growing consumer expectations, particularly amongst the younger population, increasingly aware of healthcare costs and financial planning needs.