The "Crossroads" of the Life Insurance Industry

WealthCoffee · 2026-04-06T06:13:49+00:00

In 2025, China's original premium income from personal insurance reached 4.36 trillion yuan, a year-on-year increase of 8.9%. Although the industry is performing well, it faces challenges such as agent attrition and investment risks. Currently, it is undergoing four major changes, including "decrease in volume and improvement in quality," and there is an urgent need to transform in order to respond to these challenges.

WealthCoffee

2026-04-06 06:13:49

Abstract generation in progress

In 2025, China’s original premium income for personal insurance was 4.36 trillion yuan, up 8.9% year over year. However, behind this seemingly impressive performance lies a mixed picture—some bright spots and some challenges. On one side are the “new trends” of shifting deposits, cost optimization, and high-customer dividends. On the other side are the “old problems” of agent attrition, risks of negative spread, and pressure on the investment side. This is not merely cyclical fluctuation; after 30 years of rapid industry growth, the sector is now standing at a crossroads of “ushering in the new while bidding farewell to the old.”

Take a look at the table: four major shifts

The life insurance industry is currently undergoing four major shifts.

Shift one: “less quantity, better quality” among agents

The “people-on-the-ground strategy” that the insurance industry has relied on to survive has gradually become less effective. From 2019 to 2024, the number of agents fell sharply from 9.12 million to 2.64 million. But at the same time, leading insurers have been attracting top talent from sectors such as investment banking and law firms with high salaries. Combined with AI technology enabling them, individual agent productivity has improved significantly.

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