China’s Internet-Based Insurance Sector Records Steady Growth, Driven by Post-1995 Consumers

Beijing (China Daily) – China’s internet-based insurance industry is experiencing strong and consistent growth, with online policy purchases quickly catching up to traditional offline channels, according to a new report released jointly by Yuanbao Inc and the Research Center for China Insurance and Pension Finance at Tsinghua University’s PBC School of Finance.

The report highlights a notable generational shift: for the first time, 84% of consumers born after 1995 opted to buy insurance online, surpassing the post-1985 demographic. This signals the rising digital influence of younger consumers, who are increasingly comfortable with AI-powered tools and online platforms.

Data from the Insurance Association of China shows that internet insurance premiums reached 366.3 billion yuan in the first seven months of 2024, a 15% year-on-year increase. The share of consumers purchasing insurance online rose from 73% in 2023 to 78% in 2024, while offline purchases dropped to 79%, indicating a likely crossover within the next two years.

The report also links this digital surge to shifting consumer behaviour. Advanced technologies—particularly artificial intelligence—are enhancing every aspect of the insurance process, from product discovery to claims handling. The post-1995 generation also shows greater concern for mental health, with nearly half reporting related anxieties. This group is leading in purchases of critical illness, outpatient, property, and pet insurance.

Experts see this trend as part of a broader evolution in the sector. Zhu Junsheng, former research director at Tsinghua University’s insurance research center, noted the shift from basic policyholding to comprehensive, service-integrated protection. Former insurance regulator Zhou Yanli added that the expansion of technologies like AI, blockchain, and cloud computing will further drive the development of smarter and more inclusive insurance services.