According to the Zhitong Finance APP, Guotai Junan has released a research report stating that the inflow of medium- and long-term funds into the market is beneficial for improving the insurance investment sector, maintaining an &#34;overweight&#34; rating for the insurance industry. In 2024, the insurance industry's premium income is expected to reach 5.6963 trillion yuan, a year-on-year increase of 5.7%, with life insurance growing by 5.7%, mainly driven by demand for life insurance savings. Property insurance income is 1.6907 trillion yuan, growing by 5.6%, with auto insurance and non-auto insurance growing by 5.4% and 8.0%, respectively. Regulatory measures promoting the entry of medium- and long-term funds into the market are expected to improve the insurance investment sector.
The main points of the report are as follows:
In 2024, life insurance premiums are expected to grow steadily, benefiting from strong demand for life insurance savings:
From January to December 2024, the insurance industry's premium income is projected to be 5.6963 trillion yuan, with a year-on-year increase of 5.7% (previous value was 6.2%). The life insurance sector's cumulative original premium income from January to December is 4.0056 trillion yuan, with a year-on-year increase of 5.7% (previous value was 6.3%). It is expected that strong customer demand for insurance savings will lead to steady annual premium growth, with life insurance, health insurance, and accident insurance at 3.1917 trillion yuan, 773.1 billion yuan, and 40.8 billion yuan, respectively, year-on-year increases of 15.4%, 6.1%, and -9.2%.
In December, the original premium income for life insurance was 152.9 billion yuan, a year-on-year decrease of 0.7% (previous value was -3.5%). The weak monthly premium growth is mainly due to insurance companies shifting their business strategies towards the 2025 New Year business; health insurance had a monthly income of 47.5 billion yuan, a year-on-year increase of 2.6% (previous value was 4.6%), indicating that customer demand for health insurance remains weak; accident insurance had a monthly income of 2.5 billion yuan, a year-on-year decrease of 2.8% (previous value was -6.9%), likely affected by new regulations on accident insurance leading to relatively low customer demand.
From January to December, new premiums for policyholder investment accounts (mainly universal insurance) were 578.7 billion yuan, a year-on-year decrease of 2.8%, with December's monthly income at 34.9 billion yuan, a year-on-year decrease of 16.3% (previous value was -14.6%), still negatively impacted by the reduction in the minimum guaranteed interest rate for universal insurance; from January to December, new premiums for independent accounts of investment-linked insurance were 16.8 billion yuan, a year-on-year increase of 19.6%, with December's monthly income at 700 million yuan, a year-on-year decrease of 39.2% (previous value was -0.8%), indicating weak customer willingness for high-risk preference products amid market volatility.
In 2024, the steady increase in vehicle ownership drives growth in auto insurance, while non-auto demand continues to grow.
From January to December 2024, the original premium income for property insurance is projected to be 1.6907 trillion yuan, with a year-on-year increase of 5.6% (previous value was 5.8%), of which auto insurance and non-auto insurance original premium income are 913.7 billion yuan and 777 billion yuan, respectively, year-on-year increases of 5.4% (previous value was 5.2%) and 8.0% (previous value was 8.7%). The stable growth in auto insurance premiums is mainly attributed to the steady increase in vehicle ownership throughout the year (year-on-year increase of 5.1%), with non-auto demand continuing to grow, driven mainly by health insurance and liability insurance, with year-on-year increases of 16.6% and 8.1%, respectively. In December, the original premium income for property insurance was 135.4 billion yuan, a year-on-year increase of 3.6% (previous value was 7.8%), with auto insurance original premium income at 95.6 billion yuan, a year-on-year increase of 6.9% (previous value was 8.4%), benefiting from the continued subsidy policies (new car sales increased by 11.9% year-on-year) leading to stable growth in insured vehicles
The original premium income from non-auto insurance was 39.8 billion yuan, a year-on-year decrease of 3.6% (previous value was 6.8%). The expected negative growth for the month is mainly due to base reasons, while accident insurance and health insurance still maintain good growth, with year-on-year increases of 10.9% and 8.2%, respectively.
Regulatory guidance for long-term funds entering the market is favorable for improving insurance investment.
On January 22, six ministries jointly issued the &#34;Implementation Plan for Promoting Long-term Funds to Enter the Market.&#34; The bank believes that measures such as optimizing the assessment system from the top down and diversifying market entry methods will effectively unblock the bottlenecks for long-term funds entering the market, bringing significant incremental funds to the equity market, which is favorable for improving the investment side of insurance companies.
Risk Warning: Equity market volatility; long-end interest rate decline; limited sustainability of customer demand

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Guotai Junan released a research report, predicting that the insurance industry's premium income will reach 5.6963 trillion yuan in 2024, a year-on-year increase of 5.7%. Life insurance and property insurance are expected to grow by 5.7% and 5.6% respectively, mainly driven by the demand for life insurance savings. Regulatory policies will promote the entry of medium- and long-term funds into the market, improving the insurance investment side. The report pointed out that although the original premium income of life insurance slightly declined in December, overall premiums showed steady growth, while the demand for health insurance and accident insurance remained weak

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Guotai Junan: Savings demand drives the prosperity of life insurance in 2024, while property insurance grows steadily