China's premium revenue is expected to hit one trillion yuan (146.3 billion U.S. dollars) this year due to strengthened promotion and increasing demand, said a senior official on Sunday.
The premium revenue grew at an annual rate of 30 percent from 460 million yuan in 1980, when insurance business began to enter into full swing in China, to hit 703.58 billion yuan in 2007, said vice chairman of the China Insurance Regulatory Commission (CIRC) Zhou Yanli at the opening ceremony of an insurance exhibition.
The revenue in the first eight months this year rose 52.24 percent year on year to 713.40 billion yuan which exceeded the total of last year, he said.
The revenue for the whole year is likely to break one trillion yuan at the current pace, he predicted.
The development of China's insurance business had been halted for 20 years after the founding of the new China in 1949. After the opening up and reform initiated in 1979, the sector was on the way to the right track and entered into full swing.
The value of the industry assets totaled more than three trillion yuan, which is owned by more than 110 insurers, according to Zhou.
Despite of the progress, insiders noted the revenue growth is poised to slow down in the fourth quarter of 2008 and the first half of 2009 as insurers are expected to retain dividends to protect its profit margin which was hurt by stock investment returns slumps. That is likely to discourage the future premium growth.
China Life, the nation's largest life insurer, saw premium jump52.9 percent from a year ago to 23.44 billion yuan in September, much slower than the 93.7 percent growth in August. The combined revenue in the first nine months totaled 248.6 billion yuan, up 56.7 percent year on year, comparing with the 57.14 percent growth in August.
Source: Xinhua
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