Summary of Key Points
In the first half of 2026, the growth rate of insurance premiums slowed down due to the high base from last year's "panic buying" phenomenon, but the industry as a whole operated smoothly. Among life insurances, dividend-based products experienced explosive growth (a year-on-year increase of 94.4%, exceeding one trillion yuan), becoming the biggest highlight. In property insurances, auto insurance stopped declining and began to recover, with new energy vehicle insurance and short-term health insurance serving as the drivers of growth. The industry is expected to continue to make steady progress in the second half of the year, as synergies between the asset and liability sides will boost insurance companies' profitability.
Detailed Analysis
1. Slowed Premium Growth in the First Half: High Base Hinders Progress, but Monthly Increases Hide Positive Trends
The total premium revenue for the industry in the first half was 3.86 trillion yuan, a year-on-year increase of only 3.3%, which is 1 percentage point lower than the 4.27% growth seen from January to May. This is mainly because insurance companies engaged in "panic buying" last year (for example, phasing out old products and causing a rush to purchase them), resulting in a particularly high base, making this year's growth seem slower by comparison.
However, there was a hidden positive trend: Premiums in June increased significantly compared to May—life insurance grew by 55.9% month-on-month, and the overall life insurance market grew by 47.15%. Why? This is because, starting from July 1st, the演示 interest rate for dividend-based products was lowered from 3.9% to 3.5%, prompting many people to buy them in June, thus releasing a wave of demand.
2. Life Insurance: Dividend-Based Products Become the Trend
Life insurance premiums grew by 3.65% year-on-year in the first half, but in June, there was a negative growth of 2.44% due to the high base from last year's product transitions. Analysts believe this is temporary, as residents' long-term savings needs remain strong.
Dividend-based products were the most popular, with sales reaching 1.01 trillion yuan in the first half, a year-on-year increase of 94.4%, accounting for more than 35% of total life insurance premiums. Why are they so popular? With low interest rates and low returns on bank deposits, dividend-based products offer both protection and potential for variable dividends, meeting people's desire to save money while earning some return. For insurance companies, these products also help reduce fixed liability costs and the risk of "interest rate mismatches" (where investment returns do not cover the promised payouts to customers).
3. Property Insurance: Auto Insurance Turns Positive, with New Energy and Health Insurance Driving Growth
Property insurance premiums grew by 2.1% year-on-year in the first half, a slight decrease from the 4.27% growth seen from January to May. However, auto insurance finally turned around, with a year-on-year increase of 0.3% in the second quarter (after a negative growth of 0.4% in the first quarter), and a further increase of 1.0% in June.
The main driver behind this improvement was new energy vehicle insurance, which saw sales of 78.4 billion yuan in the first half, a year-on-year increase of 18.53%. Short-term health insurance, which is not part of the auto insurance category, also performed well, with a year-on-year increase of 21.3% in June, faster than the 5% growth in May.
4. Outlook for the Second Half: Steady Progress with Synergies Between Assets and Liabilities
Industry associations and analysts are optimistic about the industry's performance in the second half:
- Liability Side: There will be short-term pressures (July and August still have the high base from last year, and new regulations for bank-insurance channels will have an impact), but long-term demand is stable. Insurance products offer better returns than bank deposits, so the need for savings remains strong. The industry will focus more on the transformation of dividend-based products and the value of new businesses, rather than just focusing on premium volume.
- Asset Side: The yield on 10-year government bonds has stabilized at around 1.74%, and interest rates may rise as the economy recovers, reducing the investment pressure for insurance companies in fixed-income products. Additionally, the predetermined interest rate for ordinary life insurance increased to 1.94% in the second quarter (from 1.93% in the first quarter), indicating that product returns are gaining momentum.
- Profitability: Xinhua Insurance expects its net profit to increase by 40%-60% in the first half, while China Life Insurance expects an increase of 215%-235%. With improvements on both the asset and liability sides, profitability is expected to improve.
Overall, although the growth rate of the insurance industry slowed down in the first half, the internal structure is improving (with the rise of dividend-based products and new energy vehicle insurance). As the economy recovers and demand increases, the industry is set to continue to develop steadily. For individuals looking to invest in savings products, dividend-based insurance is a good option, but it's important to carefully consider the product terms and one's own needs.