2024: The Insurance Industry's Dual-Engine Breakthrough
The insurance industry in 2024 showcases the power of dual-engine growth: streamlined liabilities and enhanced investment strategies. On the liabilities side, regulatory reforms like unified reporting standards and the removal of restrictions in bancassurance have reduced costs and improved efficiency. Meanwhile, investments have surged thanks to policies encouraging long-term capital deployment.
By Q3, insurance funds reached RMB 32 trillion, a leap from RMB 30 trillion in Q2. Original premium income surpassed RMB 5 trillion, up 6.7% year-on-year, while payouts jumped 21.9% to RMB 1.9 trillion. These numbers underscore the industry's critical role as an economic stabilizer and a driver of societal well-being.
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Redefining Market Rules for Growth
ONE
The highlight of the year was the State Council's “10-Point Plan”, a blueprint for high-quality development unveiled in September. This plan lays out ambitious goals for 2035, including robust solvency, diversified products, and global competitiveness. The removal of the “1+3” bank-insurance restriction further exemplifies this reformist momentum, fostering deeper collaboration between banks and insurers while reducing operational barriers.
Together, these measures aim to reshape the insurance ecosystem, turning challenges into opportunities for sustainable growth.
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Innovation in Action
TWO
2024 has been a year of product breakthroughs. Premiums for new energy vehicle insurance surged 52.74% year-on-year to RMB 907 billion, driven by the rapid adoption of green vehicles. Meanwhile, emerging products like low-altitude economy insurance, catering to drones and air mobility sectors, are projected to generate over RMB 100 billion by 2035.
These innovations are more than just new revenue streams—they demonstrate the industry's ability to adapt to evolving market needs and support cutting-edge industries.
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A Clearer Investment Blueprint
THREE
On the investment side, insurers embraced long-term strategies, driven by policies that broke institutional barriers and encouraged steady capital flows. By Q3, equity investments accounted for 12.8% of insurance assets, up from 12.3% in 2023. Strategic acquisitions in infrastructure, healthcare, and high-dividend assets also marked a disciplined shift from past speculative trends.
This renewed focus on value creation reinforces insurers' roles as not just financial players, but also architects of economic stability and innovation.
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A Future Anchored in Resilience
FOUR
As 2024 draws to a close, the insurance industry stands poised for a new era of growth. With liability optimization and investment empowerment driving its dual-engine strategy, the sector is on track to meet both national priorities and global benchmarks. From innovative products to sustainable investments, insurers are shaping a future where financial services are synonymous with resilience and progress.
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