Through 3.19 trillion "mist," the insurance industry is entering its "secondary development."
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Turning the clock to mid-2026, China's insurance industry has handed in a thought-provoking “answer sheet”—in the first five months, original premium income broke through 3.19 trillion yuan, and total assets unprecedentedly surpassed the 43.23 trillion yuan mark.
On the surface, the year-on-year growth rate of 4.27% seems to signal a moderate recovery for the industry. Yet beneath these vibrant numbers, a thorough transformation and restructuring are quietly underway.
The current insurance industry can no longer rely solely on previous growth patterns to achieve results. On the contrary, as major banks’ five-year fixed deposit rates have fallen below 2.0% across the board; as the “reporting and execution as one” policy is being forcefully implemented; as the massive gears of population structure turn faster; as the silver economy exceeding 10 trillion yuan and long-term care insurance roll out simultaneously. The macro business environment for the insurance industry has already become complex and challenging.
From this perspective, the insurance industry reporting 3.19 trillion yuan in premium income for the first five months, a year-on-year increase of 4.27%, is actually no small feat. At a sharp turning point, the wheels did not lose momentum but moved steadily forward—a very good “result.”
“Temperature Difference” Amid Steady Growth
Data recently disclosed by the National Financial Regulatory Administration shows: From January to May 2026, the insurance industry achieved cumulative original premium income of 3.19 trillion yuan, up 4.27% year-on-year.
This number itself isn’t dazzling, but based on last year’s growth rate of 3.77%, it does indicate some recovery. The industry’s total assets have also reached a new high of 43.23 trillion yuan.
What’s notable is the change in pace. In Q1, the industry grew by 6.2%, but by May, growth had slowed to 4.27%. It’s clear that insurance entered a phase of shifting growth rates in April and May.
Life Insurance Leads, Accident Insurance Falls Behind
Looking specifically at different types of insurance, the situation varies:
The strongest performer is life insurance. In the first five months, original premium income reached 1.99 trillion yuan, up 6.15% year-on-year, far above the industry average. An important reason behind this is that three-year and five-year fixed deposit rates at major banks have dropped below 2.0%, causing some matured deposits to flow into savings-type insurance, creating a substitution effect.
Health insurance is interesting. The sector’s total health insurance premiums were 552.2 billion yuan, up 3.9% year-on-year, which looks reasonable. But breaking it down, property insurance companies’ health insurance grew 14.56%, while life insurance companies’ health insurance barely grew.
The reason may be that short-term health products like million medical insurance and “Huiminbao” are increasingly sold through property insurance channels. Meanwhile, traditional long-term critical illness products are restrained by agent channel transformation pressure, leading to weak growth.
The divergence in accident insurance is even more pronounced. Life insurance companies’ accident insurance premiums were only 16.2 billion yuan, down 11.5% year-on-year. Property insurance companies’ accident insurance, in contrast, rose 7.9% to 26 billion yuan.
The shrinkage of accident insurance in the life segment is mainly due to the diversion of aviation and travel accident insurance to online channels, and the disappearance of some bundled scenarios after internet insurance supervision tightened. The growth in the property segment is driven by the expansion of group accident insurance, employer liability insurance, and other B2B business. Overall, accident insurance is transitioning toward more targeted and scenario-based models.
Leading Insurers Pull Ahead in Growth
Leading insurers have always been the backbone of the industry. How have they performed from January to May of recent years?
First, property insurance: PICC P&C, Ping An Property & Casualty, CPIC Property & Casualty had premium incomes of 182.995 billion yuan, 90.951 billion yuan, and 63.028 billion yuan, respectively, in Q1, accounting for more than 60% of the property insurance sector’s premiums. Head company concentration remains high.
Next, life insurance. New China Life and Ping An Life saw the fastest growth, rising 14.0% and 12.79% respectively. The driving logic is strong bancassurance channels and continued focus on participating insurance. Ping An alone had new business premiums of 66.34 billion yuan, up 45.5% year-on-year.
China Life, although the largest by size, only grew 1.1%. However, notably, its new business value (NBV) jumped 75.5%, far outpacing premium income growth, reflecting improved policy quality, with a higher proportion of regular payment and long-term products.
Overall, leading listed insurers performed well in Q1 in terms of premiums. Each company displayed different growth rates, but also distinct features and positions. Taken together, their results are still impressive.
A New Stage Arrives
In 2026, the insurance industry stands at the intersection of multiple policy and market variables.
On the channel side, the continued deepening of the “reporting and execution as one” policy is reshaping the industry’s marketing ecosystem. Average commission rates have fallen by about 30%, meaning the rough sales model driven by high expenses is no longer sustainable. Those likely to succeed in future competition are leading institutions with strong brand influence, comprehensive service systems, and high customer stickiness.
On the product side, the rise of participating insurance and pressure on critical illness insurance reflect that product structure is being adjusted in sync with interest rate environment and customer demand. In the low interest era, products that balance protection and returns will be more favored by the market. Insurers’ product innovation and actuarial pricing capabilities will be key components of core competitiveness.
On the demand side, the gaps in elderly and nursing care coverage created by aging are opening up a massive, persistent blue ocean market. How insurance companies position themselves in the pension space will determine whether they can secure a favorable position in the future industry landscape.
On the investment side, the lowering of benchmark interest rates and potential capital market volatility mean insurers’ profits are fluctuating more, pushing the industry to strengthen active investment capabilities to meet the new goal of achieving long-term investment returns in a low interest environment. This will be a strategic issue every insurer must address seriously.
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