China Life sees potential in large, medium-sized cities

China Life Insurance Co Ltd, one of China's largest insurers, will quicken its expansion in large and medium-sized cities to meet demand from a rising middle class, according to company president Su Hengxuan.

Su outlined three measures to achieve this goal: formulating a three-year plan that absorbs industry leaders' experience and lessons, deepening market-oriented reform and increasing investment in talent and technology-driven products.

"China Life is slightly weaker in large and medium-sized cities", Su admitted. "But solutions outnumber problems. As the middle-income group is expanding in major cities, we will be constantly in touch with their needs through building up new teams and product models."

The insurance sector reported fast growth last year among all monitored service categories in the Yangtze River Delta region — one of China's richest regions — according to a survey conducted by Beijing-based 21 JD Big Data Institute. The institute also attributed growth to Chinese internet giants' increasing involvement in online insurance.

"China has been the second-largest life insurance market in the world, but market potential remains large as the population ages and spending on healthcare increases", Su added.

Although China's life insurance premiums declined 4.75 percent year-on-year in the first 11 months of 2018, the sector is expected to register double-digit percentages this year according to Xing Li, an expert from Swiss Re, one of the world's largest reinsurers.

Li Jingya contributed to this story.