McKinsey: China's demographics to boost insurance industry

Life insurance premiums in China are to increase by 15% annually in the next five years, more than double the 7% p.a.seen in the past five years, which will see China become the world's third largest life insurance market, according to a new industry report from McKinsey. The report estimates that China's "mass affluent" population will account for half of gross life premiums by 2020, up from 25% in 2013. These mostly young, highly-educated and professional consumers will demand more protection and investment products. Other areas of opportunity for insurance companies include medical and retirement insurances, as people become more aware of health issues and as the retiring population grows.

Premiums in China's life insurance sector may more than double in the next five years as insurers tap the rising needs of a wealthier and aging population, international consulting firm McKinsey & Co has said in a report.