The life insurance market in China is projected to grow from CNY4.9 trillion ($679.5 billion) in 2026 to CNY6.6 trillion ($927.5 billion) in 2030, registering a compound annual growth rate (CAGR) of 7.9% in terms of direct written premiums (DWP), according to GlobalData, a leading data and analytics company.

GlobalData’s Global Insurance Database indicates that the Chinese life insurance market is estimated to register a robust 11.0% growth in 2025, driven by distribution channel reform, product redesign following a benchmark rate cut, and rapid digitalization that has improved distribution and claims efficiency. Additionally, bancassurance regained primacy, as a result of the removal of the cap in May 2024 on the number of banks insurers can affiliate with, and contributed around 60% of the new premiums in H1 2025.

Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “Accelerating demographic change and retirement needs are expanding the demand for protection products. Additionally, reductions in guaranteed interest rates have driven the demand for long-term savings products, which will support life insurance premium growth in the country during 2026-30.”

According to the World Health Organization (WHO), China is one of the countries with the fastest aging population. The population aged 60 and above in China is expected to account for 22% of the population in 2025, according to the National Bureau of Statistics. Also, the population above 65 years of age is expected to account for around 15%. Such a demographic factor is driving the demand for whole life insurance products, which account for 81% of the life insurance DWP in 2025.

The growth of whole life insurance is also supported by high-net-worth individuals, who use life insurance for inheritance and estate planning. Many prioritize conflict‑free legacy planning through beneficiary designations and flexible policy structures, with life insurance becoming the preferred choice.

Sahoo adds: “The 15^th five-year plan (2026-30) of China aims to strengthen the insurance sector by emphasizing the importance of long-term care insurance to improve livelihoods. Increasing rural pensions and enhancing financial resilience under the five-year plan will boost demand for life insurance during 2026-30. Long-term financial sustainability is becoming a significant concern with the rise in the aging population. Financial sector reforms, such as a gradual increase in retirement age from 60 to 63 in a span of 15 years starting January 2025, are expected to support growth.”

Furthermore, disciplined product transitions toward participation-based solutions, digital innovation in underwriting and claims, and a more flexible investment regime provide a solid foundation for sustained premium expansion in the coming years. Insurers are using digital acceleration through the use of AI to strengthen operations, improve risk control, and customer experience, considering the rising digital adoption among young buyers.

Although the bancassurance and online channels are gaining popularity and growing rapidly, the agent channel has started stabilizing after several years of contraction. This reflects a new equilibrium as insurers integrate multi-channel strategies and improve agent quality under the new NFRA framework, which has introduced a tiered sales qualification system for agents, realigning commission incentives, and enhancing professional standards. This move is expected to support the growth of life insurance.

Product economics are undergoing a decisive transition. The benchmark rate for ordinary life products was lowered to 1.99% in August 2025, triggering product portfolio revisions across the market.  Insurers are accelerating new product launches to align with the revised pricing guidance. At the same time, insurers are pivoting toward participating (dividend) and universal life, which limit liability costs and balance with guaranteed and floating returns.

Sahoo concludes: “Despite near-term headwinds—including periodic softness in new policy volumes and the reset in guaranteed rates—the structural outlook for China’s life insurance market remains positive.”