China: Registrations of offline insurance agency companies drops by 40% year-on-year, while premiums of online business increases rapidly
Due to the combined influences of multiple factors including COVID-19, the growth rate of insurance industry nearly dropped to zero in the first five months. Behind the insurance industry’s struggles for an "inflection point" in growth, capital's enthusiasm for offline insurance agency companies began to cool down. According to data on Qichacha, from January 1st to June 21st, the number of newly registered offline insurance agencies were 2560, a sharp drop of 40% year-on-year.
Currently, there is no limit to the online business of insurance agencies. According to data disclosed by the Insurance Association of China, in 2020, the premium income of Internet life insurance companies was 211.1 billion yuan, that of Internet property insurance companies reached 79.8 billion yuan, and the total Internet premium income was 290.9 billion yuan. The penetration rate of Internet insurance was only 6.4%. The Internet penetration rates of life insurance and property insurance are 6.3% and 6.7% respectively, and there is still a lot of room for growth.
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