Insights 2024丨New types of insurance are flourishing, and insurance companies are accelerating the exploitation of new blue oceans.

In 2024, following the trajectory of China's economic development, new types of insurance such as smart connected vehicle insurance, electric vehicle insurance, low-altitude insurance, and commercial pension insurance are "flourishing", with the insurance industry continuously expanding its connotation and extension, reconstructing a new insurance ecosystem. From a rich variety of retirement insurance products to electric vehicle insurance derived from traditional auto insurance, to niche insurance products emerging in response to new demands, the insurance market is welcoming one after another "novelty". (Peking Business Daily)

117.5 billion! In 2024, the scale of bonds issued by insurance companies hits a new high; will the new year continue this trend?

According to incomplete statistics, a total of 14 insurance companies issued 17 bonds in 2024, with a total issuance scale of 117.5 billion yuan. This marks another historical high following the insurance company's bond issuance scale first breaking 100 billion yuan in 2023.

As regulatory restrictions are loosened, the transition period for the second phase of the solvency II project ("Insurance Company Solvency Supervision Rules (Ⅱ)") is extended to the end of 2025. Industry insiders expect that insurance companies with solvency pressures may accelerate their bond issuance pace to supplement capital, with insurance companies' bond issuance in 2025 likely to continue exceeding 100 billion yuan. (International Financial News)

Insurance industry's "slimming" campaign: In 2024, nearly 2,000 branches are closed and the quality of the agent team is improved.

The "slimming" actions of insurance branches have not ceased. Over the past five years, insurance companies have closed nearly 10,000 branches. In 2024, the insurance industry continues this trend. By December 31, 2024, 1,987 branches have been closed, with life insurance companies accounting for the majority.

According to industry insiders, the closure of outlets is largely due to the limited market capacity in their regions and difficulties in increasing personnel, which leads insurance companies to make trade-offs in resource allocation. Meanwhile, despite the ongoing closure of outlets, the rate of decrease in the number of insurance agents has shown signs of slowing, and the education level of agents has also improved. (21st Century Economic Report)

Insurance institutions are bullish on the fundamental-driven market of A-shares in 2025, exploring investment opportunities along the main lines of Technology and Consumer.

In 2024, the A-share market experienced fluctuations, with two "V" shaped rebounds. The SSE Composite Index, Shenzhen Component Index, and Chinext Price Index rose by 12.67%, 9.34%, and 13.23% respectively for the year. Standing at the starting point of 2025, investors are highly concerned about what kind of trend A-shares will display this year and which investment opportunities are worth paying attention to.

Regarding the driving factors for A-shares in 2025, interviewees from insurance institutions generally believe that fundamental-driven aspects are more to be expected. Meanwhile, the liquidity and market sentiment will also provide strong support for A-shares. (Securities Daily)