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Premiums continue to rise in mid-level and high-end insurance

By He Wei in Shanghai | | Updated: 2021-01-12 13:39
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Customers walk into the Shanghai branch of ZhongAn Online P&C Insurance Co Ltd. [Photo provided to China Daily]

Premiums in China's 1-million-yuan medical insurance market is projected to hit 201 billion yuan by 2025, according to a recent white paper by online insurer ZhongAn and consultancy iResearch.

The pair projected the segment would enjoy a compounded annual growth rate between 25 percent and 40 percent over the next five years, factoring in the vast needs for medium-level commercial insurance products.

The explosive growth is in part spurred by the COVID-19 outbreak, which has greatly raised people's awareness of health, filling a large void in China's basic and high-end medical services.

The average price for such products is 540 yuan according to the study, with main clients being those aged between 30 and 45.

The company reported its insurance premiums saw margins hit 622 million yuan in the first half of 2020, up 94.6 percent year-on-year.

The company raked in 6.77 billion yuan in insurance premiums in the first half, a year-on-year increase of 14.3 percent.

Jiang Xing, CEO of ZhongAn, attributed such growth to a technology-driven and data-based approach to study users' behaviors and optimize their experience through personalized services.

For instance, certain medical insurance products have received a re-purchase rate of 11 percent on its own platform during the 12 months by the first half of 2020, and the number of insurance policies in the first three quarters of 2020 reached 12.26 million.

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