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Market in a Glance
In 2008 China was the world's sixth largest life market, ninth largest non-life market, and the sixth largest insurance market overall. In the same year China overtook Korea to become the second largest life and non-life market in Asia after Japan. Despite this high ranking, the country accounted for only 3.3% of global premium income.
Market SizeThe total market size in 2008 was broken down as follows:
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Life
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Non-Life
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Personal accident & health
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Total market
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Premium in CNY mn
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666,700.00
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233,679.02
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78,500.98
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978,880.00
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Premium in USD mn
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95,941.86
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33,627.72
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11,296.73
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140.866.31
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% of total market
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68.11
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23.87
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8.02
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100
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Source:Axco Global Statistics
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Historical Development
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History
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1805
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Insurance was first introduced to China from Britain when merchants established the Jiandan Marine Insurance Co in Guangzhou.
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1865
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The first Chinese company, the Shanghai Yihe Insurance Co, was formed in Shanghai.
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1949
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Following the establishment of the People's Republic of China, all insurance operations were nationalised under the state-owned People's Insurance Company of China (PICC).
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1958
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The National Finance Conference in Wuhan decided to suspend domestic insurance business. Insurance was felt to be unnecessary because of the state's monopoly of economic activity and because of the provision of universal welfare benefits. For the next 20 years PICC's activities were confined to China's international business, principally marine and aviation.
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1980
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PICC resumed domestic insurance business.
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1984
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PICC was separated from the People's Bank of China (PBOC) by a decree which also visualised the establishment of other insurance companies.
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1986
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With the development of a more open economic policy the monopoly of PICC was broken when the Agriculture Insurance Company of Xingjiang Construction Regiment Corporation was approved. The business was confined to Xingjiang, which is a large autonomous region in the north-west of China.
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1988
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Ping An, China's first joint-stock insurance company, was granted a licence in Shenzhen.
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1991
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China Pacific Insurance Co was established in Shanghai.
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1992
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The first foreign licence was granted to the American International Group (AIG) to open life and property branches in Shanghai. This represented a return to AIG's roots, since the first American International operation was started in Shanghai in 1919 by the American entrepreneur, Cornelius Vander Starr.
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1995
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A new insurance law was passed and an increasing number of foreign and domestic licences were granted.
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1996
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PICC was restructured as a state-owned holding company with three wholly-owned subsidiaries, PICC Property, PICC Life and PICC Re.
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1999
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The China Insurance Regulatory Commission (CIRC) became the insurance supervisor in place of the PBOC.PICC was divided into four state-owned enterprises, PICC, China Life, China Re Group and China Insurance.
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2001
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China joined the World Trade Organization and agreed to extend equal treatment to foreign insurance companies over a period of three years.
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2003
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China Life floated on the New York and Hong Kong stock exchanges.
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2004
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Ping An floated on the Hong Kong Stock Exchange.Regulations for company pension schemes known as enterprise annuities were issued.
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2005
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The compulsory cession to China Re (Group) Co was phased out and replaced with a priority cession to domestic reinsurers.
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2006
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The Several Opinions of the State Council on the Performance and Development of the Insurance Industry established a blueprint for the future development of the insurance industry.
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2007
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China Pacific Group was floated on the Shanghai Stock Exchange.
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2009
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A revised insurance law came into effect on 1 October.The priority cession to domestic reinsurers was abolished.
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