(Yicai Global) July 12 -- The insurance world has turned their eyes on future growth potential of China's insurance market, which is believed to take up one third of the aggregate newly-added premiums over the next decade.

The economic research center of the global insurance company Allianz Insurance Group recently issued the "Global Insurance Markets – Current Status and Outlook up to 2027" in which the group argued the premium increase rate across the world is slated to show an upward momentum in the next 10 years, as it climbed to 5.9 percent from 3.1 percent over the past decade. In terms of the aggregate newly-added premium for the next decade, China will take up one third of the total.

The report indicated that in the aftermath of the hard times during economic recession and financial crisis, the international insurance market will see a reversal of the slow trajectory from 2008 to 2016, with a paltry 3.1 percent increase. Instead, the global premium income for the ensuing decade will post a 5.9 percent growth. Such a recovery becomes a proxy for global economy starting to advance and inflation rate moving toward a normal level.

The report also claimed that despite the possibility of a modest slow down, the growth rate in a host of emerging markets will still outperform the mature markets in developed countries. For instance, reams of emerging markets in Latin America and Asia are likely to maintain the double-digit rise in the next 10 years. Especially, China is poised to make big leaps and continue to take the lead in that regard. The report from Allianz stressed that China's insurance market is expected to keep a nearly 14 percent ascent on an annual basis for the next decade, with one third of the total newly-generated premium globally coming from the Chinese market.

The next decade will see China's life insurance market grow at a much faster pace, with a predicted average annual growth rate of about 15.7 percent, compared to non-life insurance's projected 9.9 percent annual growth rate, it suggested.

"Given the rising Asian population and the deepening issue of aging population, we can expect that life insurance in Asia, including China, will grow more rapidly," said Chen Liang, chief executive officer (CEO) of Sino-German Allianz Life Insurance Co., a joint venture under Allianz China. "We also see that more and more Chinese consumers are being fully aware of their future needs for elderly care, for themselves and for their families. They will select proper insurance schemes such as pension and medical insurance, make proper asset allocation in advance to enjoy good care in their later life. On July 4, General Office of the State Council issued several 'Decisions on Accelerating the Development of Commercial Endowment Insurance,' further reflecting the important role that commercial insurance plays on future pension market among Chinese residents," said Chen.