China’s property insurance market is on track to grow 6.1% in 2026, accelerating from 4.9% in 2025, as efforts to close the home insurance protection gap, rising demand for parametric disaster-risk solutions, and continued technology adoption drive premium expansion, according to GlobalData.
In a 25 March market commentary on the sector, the data and analytics firm projected that the market would reach 282.5bn yuan (approx. US$40.95bn) in gross written premiums (GWP) this year, before climbing to 380.5bn yuan by 2030, a compound annual growth rate (CAGR) of 7.7% over the five-year period.
GlobalData said the growth trajectory would be underpinned by inclusive home insurance pilots, catastrophe-risk modelling, and the development of disaster insurance products addressing both urban and rural exposures.
“The China property insurance market growth during 2021–25 reflects firm non-life sector performance and balanced product expansion beyond motor,” said Swarup Kumar Sahoo, senior insurance analyst at GlobalData. “Regulatory agencies have maintained a stable sector outlook by easing capital pressures and backing disciplined underwriting, which should support sustainable growth and pricing adequacy across property lines.”
The home insurance protection gap has come into sharper focus following the Wang Fuk Court fire in Hong Kong in November 2025, which amplified awareness of coverage shortfalls in mainland China and highlighted reliance on estate or contractor policies where individual household covers are absent.
Chinese property and casualty carriers are responding with customised inclusive home insurance products, although GlobalData noted that low awareness and underwriting challenges in underpenetrated segments remain near-term constraints on growth.
The Wang Fuk Court fire in Tai Po, which claimed the lives of at least 160 people in seven of eight 31-storey towers, prompted insurers to pay out more than HK$257m within three weeks of the incident, according to the Insurance Authority. S&P Global Ratings said the retained losses could lift Hong Kong’s property and casualty sector’s net combined operating ratio by 2–3 percentage points to 97%–98% in 2025, up from 93.2% in 2024.
Alongside efforts to close the protection gap, insurers are turning to technology to strengthen underwriting and improve claims efficiency. Insurers are deploying advanced catastrophe modelling, sensors, satellite data, and artificial intelligence to strengthen underwriting and accelerate claims settlement, with some post-event claims now processed within minutes. Earthquake catastrophe models are being introduced to improve pricing accuracy, while broader adoption of AI, big data, and remote sensing is supporting urban disaster-risk management across the country.
Parametric solutions are also gaining traction as a tool for closing protection gaps. GlobalData pointed to payouts following Typhoon Matmo and Typhoon Ragasa as evidence that index-based programmes can deliver rapid liquidity for climate-driven perils, and said regulatory approvals for parametric products and weather derivatives are likely to increase capacity and spur further innovation in property catastrophe protection.
Broader innovation aligned with national priorities, including green energy, high-tech manufacturing, and disaster coverage, is also expected to support growth as insurers tailor solutions to evolving industrial and urban exposures. Infrastructure and power markets are seeing increased capacity and more competitive terms, with China’s power insurance premiums rising on the back of new projects and improved risk management practices.
“Realising this upside will hinge on closing the home insurance protection gap, embedding catastrophe-risk finance, and maintaining underwriting discipline under a supportive regulatory regime,” Sahoo said. “Technology investments — from catastrophe models to AI-enabled claims — will help raise resilience and customer confidence during 2026–30.”
