(Yicai Global) May 25 -- The Chinese insurance sector’s revenue from insurance premiums will expand 8.1 percent a year for the next 10 years, much higher than the global average of 5.2 percent, German insurance giant Allianz said.

China’s insurance sector will be worth EUR1.5 trillion (USD1.6 trillion) by 2033, and will account for 15.2 percent of the world’s insurance premium revenue, up from the current 11.4 percent, the Munich-based insurer said in a recent report.

Life insurance will remain the biggest earner in China’s insurance sector, growing at an annual rate of 7.1 percent to reach EUR706.1 billion (USD757.8 billion) in 10 years’ time. Property and casualty insurance will expand 8.2 percent a year to hit EUR442.1 billion while health insurance will rise 10.2 percent annually to EUR337.9 billion.

This is a slowdown from the three segments’ growth in the past decade. Life insurance expanded 9.9 percent a year from 2012 to last year, while p&c insurance increased 9.8 percent and health insurance 25.8 percent, the report said.

“Insurance proves its worth in turbulent times of high inflation and low growth. The insurance industry cannot undo inflation, but it can smooth out the impact over time, acting as a kind of buffer,” said Ludovic Subran, chief economist at Allianz. Insurance is an essential shock absorber, as it flattens the curve of the economic cycle for customers, he added.

The globe’s income from insurance premiums climbed 4.9 percent last year from the year before to EUR5.6 trillion (USD6 trillion) despite challenges in the macroeconomy. China’s premium income accounted for EUR633 billion of this, advancing 4.6 percent.

Technology will change how insurers operate, Allianz said. Ecosystems, for instance, will play a decisive role in customer access, offering not only individual products, but comprehensive solutions for clients, whether it has to do with lifestyle, travel, wealth or health.

Artificial intelligence also opens unimaginable possibilities in data analytics, revolutionizing the entire value chain from underwriting to claims handling, it added.

Editors: Dou Shicong, Kim Taylor