<\/p>\n
China\u201cs inclusive insurance sector has gained strong momentum in recent years, powered by a string of government initiatives.<\/p>\n
Once confined to small pilot schemes, it now extends to gig workers, migrant households and even entire city populations. Growth has been striking, but insiders and experts caution that the industry is still in its infancy, weighed down by familiar growth pains.<\/p>\n
The sector has been buoyed by steady policy support.<\/p>\n
In June, the National Financial Regulatory Administration and the People\u2019s Bank of China unveiled a joint plan to build an integrated inclusive finance system, covering services, credit and insurance, with a strong push to strengthen the insurance framework.<\/p>\n
\u201eChina\u2019s inclusive insurance policy has entered a new stage of systematic deepening,\u201c said Xing Li, a researcher at the Chinese Academy of Financial Inclusion at Renmin University of China, speaking at a seminar on inclusive insurance in Beijing on Wednesday.<\/p>\n
China\u2019s first experiments started nearly two decades ago with agricultural pilots and, subsequently, micro life insurance for vulnerable rural and urban groups. Xing describes those initiatives as the \u201e1.0 version \u201eof inclusive insurance.<\/p>\n
Currently, several innovative insurance products and business models have emerged. Chief among them is Huiminbao, a city-tailored health insurance sold at modest premiums to plug gaps in public healthcare.<\/p>\n
For many, it marks the \u201e2.0 version\u201c of inclusive insurance, recognized as a crucial means to enhance social stability and support broad economic development.<\/p>\n
The model has expanded rapidly. In Shenzhen, a comprehensive package now protects 1.4 million gig workers, ranging from food delivery riders to domestic helpers, by combining accident and medical coverage. A report released by Nankai University noted that by 2023, 193 Huiminbao products had been launched across 30 provinces and regions, with the total insured reaching 168 million.<\/p>\n
\u201eOne of the key breakthroughs in this stage lies in government and industry working together, rather than a single department\u2019s action,\u201c said Xu Leyang, a general manager at Ping An Property and Casualty Insurance, at the seminar.<\/p>\n
He pointed to Huiminbao as a model of cooperation between local health authorities and commercial insurers.<\/p>\n
Yet the momentum has not erased nagging obstacles. \u201eOne of the most striking tensions is between surging demand for more diverse protection and the sector\u2019s current ability to supply it,\u201c said Li Xiaolin, who leads a risk governance research center at the Central University of Finance and Economics. At the seminar, he emphasized that meeting consumer expectations now requires a diversity of products.<\/p>\n
An even deeper conflict lies in balancing inclusivity with sustainability. Products designed for vulnerable groups often need subsidies to survive. Without them, insurers acknowledge, uptake would fall sharply.<\/p>\n
Bei Duoguang, president of the Chinese Academy of Financial Inclusion, added: \u201eThe pay-first, claim-later model of insurance tests the confidence of vulnerable households.\u201c That feature, he noted, has slowed the spread of inclusive insurance worldwide.<\/p>\n
He stressed that in the early stages, government involvement is essential, but lasting success depends on the joint efforts of regulators, insurers and social organizations.<\/p>\n
Dirk Reinhard, vice-chairman of the Munich Re Foundation, likened the task to building a house. \u201eIf you only have a good roof but no solid walls, it won\u2019t be stable and cannot protect its residents.\u201c<\/p>\n
Industry consensus is forming around two priorities: building smarter digital infrastructure and upholding commercial discipline. Experts have urged regulators and insurers to promote new insurance infrastructure and establish cross-institutional, cross-sector information-sharing platforms \u201eto better track customer volumes and risk structure changes\u201c.<\/p>\n
Xu Jinghui, chairman of the Renda Foundation for Financial Inclusion, stressed at the seminar that inclusive insurance must uphold its commercial nature. \u201eIt should realize scientific pricing in line with insurance principles and business rules, and leverage technology to enable low-cost operations. Only then can we break the so-called impossible triangle of low premiums, high coverage and profitability,\u201c he said.<\/p>\n
The market potential remains large.<\/p>\n
According to the Chinese Academy of Financial Inclusion, inclusive insurance premiums reached 360 billion yuan ($50.4 billion) in 2023, about 7 percent of the total. By 2030, that figure could reach 930 billion yuan, lifting its share to 15 percent of an industry expected to exceed 7 trillion yuan.<\/p>\n
[email\u00a0protected]<\/p>\n