China’s internet-based insurance market continues to expand rapidly, with online insurance purchases approaching the volume of traditional offline sales, according to a report released Wednesday.
The report, jointly prepared by online insurance distributor Yuanbao Inc and the Research Center for China Insurance and Pension Finance at Tsinghua University’s PBC School of Finance, highlights a notable shift in consumer behavior across generations. For the first time, 84 percent of consumers born after 1995 purchased insurance online, surpassing the post-1985 cohort.
Data from the Insurance Association of China shows that internet insurance premiums reached 366.3 billion yuan in the first seven months of 2024, marking a 15 percent increase compared to the same period last year.
The share of consumers choosing online insurance rose from 73 percent in 2023 to 78 percent in 2024, while offline purchases declined from 85 percent to 79 percent. The report projects that online insurance will surpass offline channels within the next two years.
This rapid growth is attributed to the increasing digitization and intelligence of consumer behavior. Advanced artificial intelligence technologies are reshaping the insurance experience—streamlining everything from product research and purchasing decisions to post-sale support and claims processing.
Among all demographic groups, the post-1995 generation is the most digitally engaged, with the highest online insurance participation rate. Their comfort with digital platforms stems from growing up in the internet era, making them more receptive to purchasing insurance online.
The report also notes that mental health concerns are more prevalent among this younger group, with nearly half expressing related anxieties. About 60 percent have bought accidental injury or critical illness insurance, while their uptake of property, outpatient, and pet insurance products is significantly higher than the general population.
Zhu Junsheng, former research director at Tsinghua University’s PBC School of Finance, commented on the evolving trends in internet insurance. “The industry is shifting from simply holding policies to seeking optimized, comprehensive protection. This change reflects greater risk awareness and a rising demand for proactive security measures,” he said.
Zhu added that this evolution entails moving from basic coverage toward integrated solutions and transforming traditional insurance products into a broader “insurance plus services” ecosystem.
Zhou Yanli, former vice-chairman of the China Insurance Regulatory Commission, predicted that internet insurance will continue to broaden its scope. “With accelerated development in technologies such as AI, blockchain, and cloud computing, insurance services are expected to become smarter, more inclusive, and increasingly reliable,” Zhou said.
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