The recently released “2024 China Internet Insurance Consumer Insight Report” reveals significant changes in insurance consumption behavior. The report, jointly compiled by Yuanbao Group and the China Insurance and Pension Finance Research Center of PBC School of Finance, Tsinghua University, with academic guidance from the China Insurance Society, is based on a survey of nearly 3,200 residents across cities from first – tier to fifth – tier. The survey period was from September to November 2024.
Key findings include a notable increase in consumers’ insurance awareness and a clear trend of insurance going online. Nearly 60% of households are projected to spend over 8,000 yuan on annual premiums in 2024, a significant rise from 2023. Additionally, 76% of consumers plan to adjust their insurance configuration within the next two years and increase their premium budgets. This indicates growing willingness to invest in insurance and expanding insurance demand.
Changing Consumer Concerns
Consumer concerns have shifted over the years. While “difficulty in claiming compensation” was previously the top concern, in 2024, “difficulty in choosing products” emerged as the primary issue. Sixty – three percent of consumers reported struggling to select suitable insurance products amid the vast array available. This reflects the increased supply of insurance products and higher internet penetration rates, leading to what the report terms “insurance choice difficulty syndrome.”
Increasing Rationality in Purchasing Decisions
Consumers are becoming more rational in their purchasing decisions, with 70% either having paid for or considering paying for professional insurance consulting services. This trend underscores the complexity of the insurance market and the value consumers place on expert advice to tailor personalized and precise protection plans.
Upgrading from Basic Protection to Refined Allocation
Data shows that in 2024, 60% of consumers chose to upgrade their existing insurance products for enhanced protection, surpassing the proportion of new insurance purchases. This indicates a shift towards optimizing existing insurance structures to meet evolving risk protection and wealth management needs.
Risk protection upgrades are evident in the high adjustment rates of critical illness and accident insurance. Wealth management through insurance is also on the rise, with 57% of consumers using insurance as a wealth management tool, second only to bank wealth management. This trend reflects increased consumer demand for health and elderly care protection, influenced by the macroeconomic environment, interest rate trends, and the evolving supply side of insurance products.
Focus on Cost – Effectiveness and Inclusive Services
The latest research indicates that 57% of consumers prioritize cost – effectiveness when purchasing insurance. Among those willing to pay higher premiums, 48% focus more on the type of insurance product rather than brand and service. This highlights a growing emphasis on matching protection content, compensation experience, and price.
The demand for inclusive insurance is being released online, with the online insurance purchase rate among people over 60 years old rising from 26% to 66%. Similarly, the online insurance purchase rate in third – and lower – tier cities increased from 70% to 75%. These figures demonstrate the growing popularity of inclusive insurance through internet channels.
Online Insurance Purchase Rates and Intermediaries
Internet insurance is entering a new phase of standardized and high – quality development. In 2024, the online insurance purchase rate reached 78%, nearly matching the offline rate of 79%. Over the next two years, the online rate is expected to surpass the offline rate.
Among young consumers, the acceptance of online insurance intermediaries has surged. The purchase rate of online insurance intermediaries rose from third place in 2023 to second in 2024, with their share increasing from 24% to 44%. This trend validates the prediction in the “China Internet Insurance Development Report (2024)” that Internet insurance is poised to exceed the one trillion yuan mark within five years.
Conclusion
The “2024 China Internet Insurance Consumer Insight Report” highlights a significant shift in insurance consumption behavior, driven by increased awareness, rational decision – making, and a focus on cost – effectiveness. The rise in online insurance purchase rates and the growing acceptance of online intermediaries underscore the potential for continued growth in the Internet insurance market. As consumers seek more personalized and cost – effective solutions, the insurance industry must adapt to meet these evolving demands, leveraging both online and offline channels to provide comprehensive protection and wealth management services.
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