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China puts a premium on growth of insurance

By Hu Yuanyuan | China Daily | Updated: 2014-08-14 07:20

Insurance penetration in China, a key indicator of the industry's role in the overall economy, is expected to reach 5 percent by 2020, the State Council said on Wednesday.

The percentage, calculated by dividing the overall premium by GDP, now hovers at around 3 percent, indicating huge growth potential for the sector. Meanwhile, insurance density, which is calculated by dividing the premium by population, is estimated to hit 3,500 yuan ($565) per person by 2020, up from the current 1,266 yuan figure.

Xiang Junbo, chairman of the China Insurance Regulatory Commission, said in July that the country's premium income could be among the top two worldwide by 2020.

China puts a premium on growth of insurance

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