China: can a new risk pool improve protection for urban residents?

China's residential housing is significantly under-insured. We see a huge opportunity for insurers to tap this market through partnerships.

Key takeaways

  • Almost 70% of China's urban households' assets are concentrated in property.
  • Residential insurance premiums represented only 0.01% of China's GDP in 2019.
  • In China 43.4% of urban households have a mortgage but residential insurance is not a lender requirement.
  • Special maintenance funds (SMF) protect common areas of residential communities but less than 2% of funds are utilised.
  • Insurers have an opportunity to develop mortgage-linked products and leverage the SMF.

Economic Insights, direct to your inbox

Our Economic Insights series looks at current economic topics and their implications for the re/insurance industry.

Subscribe to receive each edition of Economic Insights.

Tags

pandemics finance economicpolicy insurance economicinsights china corona covid19

Economic Insights China: can a new risk pool improve protection for urban residents?

Contact

See also former Economic Insights