Rural revitalisation in China: a "Blue Ocean" opportunity for insurers

China's rural sector presents huge as-of-yet untapped insurance demand potential, in an environment of still limited competition.

Key takeaways

  • Supportive government policy and digital penetration will power strong gains in rural economic value, helping China offset the impact of a slowing global growth environment.
  • The government targets zero poverty in rural areas this year.
  • Rural incomes and consumption are growing by 9-10% annually. There will be new demand for insurance, in a market with still limited competition.
  • We forecast an 11% annual increase in rural premiums to more than CNY 1 trillion in 2025.
  • Rural health insurance premiums will grow by around 20% annually, agriculture by close to 13%, motor by 11% and other P&C by 22%.

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Economic Insights Rural revitalisation in China: a "Blue Ocean" opportunity for insurers

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