(Yicai) Aug. 4 -- China's insurance industry reported slower premium growth in the first half of 2026 as last year's high comparison base weighed on results, although industry insiders said the moderation does not change the market's long-term resilience.

The industry's original insurance premium income, which measures premiums collected directly from policyholders before reinsurance, totaled CNY3.86 trillion (USD571.6 billion) in the first six months, up 3.3 percent from a year earlier. The growth rate was 1.02 percentage points lower than that recorded in the January-May period, according to the latest regular press conference held by the Insurance Association of China.

The slower growth was mainly caused by a high base of comparison from last year and negative premium growth in June, according to analysts. Several brokerages said the June weakness reflected a short-term base effect rather than any deterioration in consumers' long-term demand for insurance savings products.

"The insurance market is expected to continue a stable and progressive operating trend in the second half of 2026," Fang Yong, deputy secretary-general of the IAC, said at the press conference.

Life Insurance Sees Slower Growth

Much of the slowdown was driven by weaker growth in the life insurance segment. Personal insurance companies generated original insurance premium income of CNY2.87 trillion in the first half, up 3.65 percent from a year earlier. The growth rate was 1.31 percentage points lower than in the January-May period.

Despite the overall slowdown, participating insurance, a type of life insurance that shares insurers' profits with policyholders, continued to post robust growth. Original insurance premium income from participating insurance products reached CNY1.01 trillion, soaring 94.4 percent from a year earlier.

In a low-interest-rate environment, participating insurance products, which combine protection with variable investment returns, are well suited to households' long-term asset allocation needs and are accelerating the industry's product transformation, according to Soochow Securities. The brokerage said the shift toward participating insurance is helping insurers optimize rigid liability costs and ease pressure from narrowing investment spreads.

Auto Insurance Returns to Growth

The slowdown was less pronounced in the property insurance business. Property insurers reported original insurance premium income of CNY984.6 billion (USD145.8 billion) in the first half, up 2.1 percent from a year earlier. The growth rate was 0.15 percentage point lower than in the January-May period.

Auto insurance, the largest property insurance segment, returned to positive growth. Data from Soochow Securities showed auto insurance premiums rose 0.3 percent year on year in the second quarter, reversing a 0.4 percent decline in the first quarter. June premiums increased 1 percent from a year earlier after remaining flat in May.

According to Guotai Haitong Securities, China's commercial auto insurance market for new energy vehicles, which refers to voluntary coverage in addition to mandatory insurance, maintained rapid growth in the first half. Written premiums totaled about CNY78.4 billion (USD11.6 billion), up 18.5 percent from a year earlier, making the segment the main growth driver for auto insurance.

Editor: Emmi Laine