The China Insurance Consumer Confidence Index (CICCI) comes in at 70.3, says the 2020 CICCI Report recently released by CISFC. On a comparable basis, the index drops by 0.8 points from the previous year, yet still indicates strong confidence. By sector, the CICCI for life insurance and property insurance is 70.0 and 70.6, respectively.

The index survey covers 18 provinces (autonomous regions/municipalities) in the Northeast, North, East, South, Central, Northwest, and Southwest China. These provinces have contributed more than 90% of the total primary insurance premiums. Respondents are individuals who have purchased commercial insurances. Specifically, their confidence in the macro-environment and the insurance industry both score above 70. This means most insurance consumers appreciate China’s robust economy and are optimistic about the industry. Individual consumption confidence falls slightly, because the pandemic has cast a shadow on consumers’ spending power and willingness to buy insurance. The majority of the consumers, however, have positive expectations for their future income.

The survey findings have several implications. First, CICCI has stayed in the strong confidence interval for 5 consecutive years and hit 70 for 4 consecutive years. This unshakable consumer confidence amid the sudden pandemic partly explains the momentum of China’s economy and the strong resilience of its insurance industry. Second, insurance consumers have firm confidence in the macro-environment. They feel the power of the country—the only major economy that achieved positive growth in 2020 thanks to its strategic success in the fight against the pandemic. Third, consumers have higher perceived confidence in industry development and policies. Therefore, the industry is suggested to continue its people-oriented development concept, further enhance consumer satisfaction, and strive to improve consumers’ sense of gain, contentment, and trust. Fourth, individual consumption confidence slips lower. In response, the industry should promptly adjust marketing and service strategies, seek ways to serve consumers better in the context of normal pandemic prevention and control, and accelerate the launch of quality products that meet consumer needs. Fifth, consumers are in urgent need of products with high insurance amount. To address this need, the industry should learn from successful product innovations and offer targeted insurance products that meet consumers’ different levels of needs, while ensuring risk control.

The year 2021 marks the sixth anniversary of CICCI. As the only insurance index that directly reaches consumers, listens to their voices, and reflects their confidence, CICCI captures the changing sentiment on the macro-environment and industry development. Looking forward, CISFC will continue to expand the application of the index and safeguard the healthy development of the industry as well as the legitimate rights and interests of insurance consumers.