The China Insurance Consumer Confidence Index (CICCI) in Q2 2022 was 66.5, down 5.6 from Q1 but 0.2 higher than the comparable period in the year before. Numerous measures of consumer confidence lost ground in Q2 compared with Q1. Among them, both the National Bureau of Statistics Consumer Confidence Index (NBSCCI) (87.5) and People’s Bank of China Depositors Income Confidence Index (PBCICI) (45.7) slumped below their medians (100 and 50 respectively). Although CICCI also trended downward in Q2, it remained higher than the median (50) and stayed in the (65, 85] range for “high confidence.”

In H1 2022, the turbulent international landscape has notably put a brake on the recovery of the world economy, and sporadic Covid-19 resurgence in China has also been economically disruptive. These factors have impacted insurance consumers’ perception of the macro environment and the insurance industry, as well as their expectations on future income. In response, a range of policies and measures—designed to balance pandemic control with social and economic development and to stabilize the economy—are put into action, further highlighting the role of the insurance sector as a “shock absorber” and “stabilizer.” As such, insurance consumers remain highly confident about the sector.

In Q2 2022, the confidence index for life insurance consumers hit 66.3, up 0.5 from Q1 and 0.6 from the same period a year ago, falling in the “high confidence” range. Its component indicators reveal the following: First, the confidence in macro environment, though lower than the same period last year, has made a turnaround from Q1 with a gain of 0.8. Of the tertiary indicators of the confidence in macro environment, although “perceived economic environment” continued with the downward trend, the expectations on economic environment rose 4.2 from Q1, driving the rebound of the confidence in macro environment. Second, confidence in insurance industry has stabilized and is rising. Of its secondary indicators, both “insurance service satisfaction” and “perceived industry policies” have made gains from Q1. Notably, insurance service satisfaction has been on an upward trajectory since Q2 2021. Third, confidence in individual spending has remained stable. Of its secondary indicators, “insurance spending willingness” has been rising for three consecutive quarters while “consumer trust inclination” has been trending downward since Q4 2021. The opposite movements of the two have a canceling effect, resulting in a mostly stable confidence in individual spending.

The steady and sometimes rising confidence level of life insurance consumers is a boon to the life insurance companies in H2 2022. The improving outlook of life insurance consumers on the economy, the recovery of insurance service satisfaction since Q2 2021, and the steady rise of insurance spending willingness promise a good H2 for insurance marketing activities.

The confidence level of property insurance consumers registered 66.7 in Q2 2022, still in the “high confidence” range but—unlike the case for life insurance consumers—much lower than what it was in Q1. This drop is mainly attributable to the higher baseline value in Q1 compared with the previous years, and is consistent with the trend in the similar period last year. The component indicators show that, first, confidence in macro environment was below the Q2 2021 level, with its tertiary indicators—perceived economic environment and expectations on economic environment—falling in the “average confidence” bracket. Second, confidence in insurance industry and confidence in individual spending, though lower than they were in Q1, still bested the Q2 2021 figures. Five of the six secondary indicators, namely perceived industry policies, insurance service satisfaction, consumer trust inclination, and insurance spending willingness, have shown improvements from Q2 2021, but confidence in industry development fell slightly from the same period in the year before.

The confidence index for property insurance consumers is at a low ebb, bringing uncertainty to property insurance spending in H2 2022. With property insurance consumers becoming more cautious about the macro environment and the insurance industry, insurance spending willingness is now in the “average confidence” range, which may limit the effectiveness of marketing programs. The good news is that “insurance service satisfaction” and “consumer trust inclination” both remain in the “high confidence” range, which would make it easier for property insurers to approach consumers and offer them more pertinent services.