sigma insights 03/2026: Inclusive insurance in China
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Inclusive insurance in China aims to serve customers who have relatively limited access to insurance by providing "wide coverage, equitable access, affordable premiums, and effective protection". 1 Inclusive insurance has evolved from microinsurance and is helping to expand insurance coverage to strengthen social protection. It focuses primarily on low- and middle-income populations and small, medium, and micro enterprises (SMMEs).
In China, inclusive insurance covers agricultural insurance, home property insurance, SME commercial insurance (including export credit insurance, property insurance, liability insurance, employer liability insurance, etc.), Huimin Bao (affordable government-backed medical insurance), and elderly-focused insurance (e.g., life, accident insurance), based on the government's definition. 2
About 7% of China's insurance market was considered "inclusive" in 2023, accounting for about CNY 360 billion (~USD 51 billion) of premiums, our research partner, the Chinese Academy of Financial Inclusion (CAFI) at the Renmin University of China, estimates. China has elevated inclusive finance (incl. insurance) as one of its top five policy priorities, and it forms a key plank of the country's financial development strategy, designed to support inclusive economic growth. 3
China's national guidance defines inclusive insurance by the "4As" of availability, accessibility, affordability and adequacy. Inclusive insurance is gaining recognition as a tool to safeguard livelihoods for vulnerable groups and bolster societal resilience in China.
China's inclusive insurance premium income in 2023 (CNY billion)
Official documents have not to date specified any specific insurance lines or market size for inclusive insurance in China. Rather, its scope is expanding and evolving as products and providers adapt dynamically to societal needs, while digital advancements are also enabling greater rollout. This study provides the first structured analysis of the scale and structure of inclusive insurance and estimates of protection gaps in China.
We estimate China's inclusive insurance protection gap (in premium-equivalent terms) at CNY 580 billion in 2023. This represents 62% of the total need for these "inclusive" types of insurance by lower income individuals and small enterprises. To narrow the protection gap, the inclusive insurance sector needs to balance affordability for customers with commercial sustainability for the insurance provider. Greater government support would support this balance, while digital innovation in new service models to overcome accessibility barriers can also benefit.
This study was produced by Swiss Re Institute in partnership with the Inclusive Finance Research Group at CAFI.
The full publication is available in Chinese on the CAFI website: 报告
Read the full publication in the sigma explorer client portal
References
Reference
1Source: Guiding Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of the Insurance Industry, the State Council of China (2024).
2"To better meet the insurance needs of farmers, urban low-income groups, and other groups; optimize the supply of insurance coverage for new business formats, new urban residents, and other groups; promote accident injury insurance; and encourage the development of exclusive inclusive insurance for certain segments," as stated in the State Council’s Guiding Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of the Insurance Industry (2024).
3The five priority areas in financial services in China are known as "Five Major Articles of China's Financial Policy" referring to: tech finance, green finance, inclusive finance, pension finance and digital finance, initiated at the 2023 Central Financial Work Conference, aiming to align financial resources with national strategic goals for high-quality economic development.
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