With the regulatory changes and the use of technology, the insurance industry in China is beginning to recover from the losses incurred due to the Covid-19 outbreak. Although the forecast growth rate between 2019 – 2023 has dropped post-Covid19, still, it maintains a strong growth. The Covid-19 in China: Insurance Forecast Snapshot report reveals that the insurance industry will witness a  revised growth rate with a compound annual growth rate (CAGR) of 6.1% between 2019 – 2023 (down from 10.4%), says GlobalData, a leading data and analytics company.   

Two factors aiding the recovery have been the reactions of the Banking and Insurance Regulatory Commission (BCIRC) and leading life insurer, Ping  An.

Ping An has seen its number of customers decline by 9% to 1.1 million following the outbreak, but a tenfold increase in registrations for its online health consultation service. Its ‘Good Doctor’ application has seen 1.1 billion registrations for health consultations since the outbreak.

Ben Carey-Evans, Insurance Analyst at GlobalData, says: “These are extraordinarily difficult times for all businesses, and Ping An losing so many customers is no surprise. It is impressive that it has managed to extend its reach way beyond its customer base via its digital ‘Good Doctor’ app. It is already the leading life insurer in China, and it has now direct access to 1.1bn people through this app.”

The BCIRC has been similarly quick to respond as it fast-tracked approval for new low-cost insurance products. These have premiums of between 15-30% less than the standard critical illness products. This is expected to expand the reach of insurance, and GlobalData forecasts these products to have a penetration rate of 2.7% by 2023.

Carey-Evans concludes: “The insurance industry around the world is likely to see significant changes following this pandemic. Insurers will not be able to reset to how it was before when it eventually blows over. Early examples from China suggest more affordable policies to increase the reach of insurance and access to digital services like virtual GPs will be key to bringing consumers back into insurance.”