In the first half of 2026, China’s insurance sector experienced slower premium growth compared to the previous year, primarily due to the high base established last year. Despite this slowdown, industry insiders remain optimistic about the long-term stability of the market.
The total direct insurance premiums, which represent the premiums collected directly from policyholders before reinsurance, reached CNY3.86 trillion (approximately $571.6 billion), marking a 3.3% increase compared to the same period last year. This growth rate is 1.02 percentage points lower than what was recorded from January to May, according to the latest data released by the Insurance Association.
Analysts attribute the deceleration mainly to the elevated comparison base from last year and a dip in premiums in June. Several brokerage firms noted that the decline observed in June was a short-term effect and not indicative of a long-term downturn in consumer demand for insurance savings products.
The outlook remains positive, with a deputy secretary-general stating that the insurance market is expected to maintain a steady and progressive growth trend throughout the latter half of the year.
Life Insurance: Growth Slows Down
The overall slowdown was most noticeable in the life insurance segment. Personal insurance companies reported total original premiums of CNY2.87 trillion during the first half, up 3.65% from the previous year. This growth rate is 1.31 percentage points lower than in the first five months of the year.
However, not all sectors experienced the slowdown equally. Participating insurance— a type of life insurance that shares profits with policyholders — continued to grow rapidly. Premiums from participating products hit CNY1.01 trillion, an impressive 94.4% increase year-over-year.
In a landscape marked by low interest rates, these participating insurance products—which combine coverage with variable investment returns—are increasingly favored by consumers for long-term asset planning. According to Soochow Securities, this trend is prompting the industry to innovate and evolve, helping companies manage liability costs more effectively and easing pressures caused by shrinking investment margins.
Auto Insurance: Returns Bounce Back
Property insurance, particularly auto insurance, showed signs of recovery. Reported premiums reached CNY984.6 billion (around $145.8 billion), reflecting a modest growth of 2.1% compared to the previous year, slightly lower than the growth seen earlier in the year.
Notably, auto insurance, the largest segment within property insurance, moved back into positive territory. Data from Soochow Securities indicated a 0.3% increase in premiums for the second quarter compared to the same period last year, a reversal from the 0.4% decline experienced in the first quarter. June saw premiums rise by 1% from a year earlier after remaining flat in May.
Furthermore, China’s market for commercial auto insurance covering new energy vehicles continued to expand rapidly. Premiums for this segment reached approximately CNY78.4 billion (about $11.6 billion), up 18.5% from the previous year, marking it as the main driver of growth within auto insurance.