As core players in both the A-share market and the life insurance sector, China Life Insurance Co Ltd (SH601628), Ping An Insurance (Group) Co of China Ltd (SH601318), China Pacific Insurance (Group) Co Ltd (SH601601), People's Insurance Co of China Ltd (SH601319), and New China Life Insurance Co Ltd (SH601336) provide a critical lens into the broader industry's evolution. Their business performance not only reflects the trajectory of leading institutions but also indicates the direction of the entire market.
During the first half of 2025, the industry saw a significant push into bancassurance, with the top five listed insurers achieving an average growth rate of 58% in this channel. This period marked rapid expansion in premium scale and demonstrated robust value creation. However, the high baseline established in 2025 has led to a noticeable deceleration in bancassurance premium growth for these insurers during the first half of 2026, with some entities even reporting negative growth.
Despite the pressure on new business premiums, the value contribution of the bancassurance channel has gained widespread recognition. At the mid-year results briefings for 2026, the management teams of all five listed insurers unanimously emphasized that the strategic importance of bancassurance will not diminish due to short-term data fluctuations. The channel's role is undergoing a deep transformation, shifting from a "scale engine" to a "new value engine."
The performance of the bancassurance channel among the top five insurers varied significantly in the first half of 2026. Building on the high-growth base of 2025, the sector's overall growth has moderated. Notably, PICC Life, New China Life, and CPIC Life reported varying degrees of negative growth in their bancassurance premiums, indicating that the channel is in a phase of deep adjustment.
Looking at the specific figures, China Life Insurance posted total premiums of RMB 81.458 billion for the first half of 2026, a year-on-year increase of 12.44%, demonstrating strong resilience. Meanwhile, Ping An Insurance's life and health insurance segment recorded scale premiums of RMB 66.495 billion from the bancassurance channel, a substantial 59.86% jump. In contrast, New China Life saw its bancassurance premiums decline by 3.5% to RMB 44.554 billion. CPIC Life experienced an 8.94% drop, with premiums falling to RMB 37.935 billion from RMB 41.66 billion a year earlier. PICC Life witnessed a 13.1% decrease, with Bancassurance premiums sliding from RMB 53.104 billion to RMB 46.159 billion.
The data shows that only China Life and Ping An's life and health operations achieved positive growth, with neither matching the pace set in the same period of 2025. During the first half of 2025, all five major insurers maintained positive growth in the channel, with three companies exceeding 60% growth. CPIC Life and Ping An Life even achieved remarkable growth rates of 82.55% and 74.67%, respectively.
Industry insiders have attributed the negative growth primarily to a significant reduction in single-premium policies. Wang Guojun, a professor at the University of International Business and Economics, explained that China Life and Ping An's life and health segments were able to sustain positive growth largely due to their in-house banking operations. This internal synergy provided a buffer against the broader market headwinds.
An interesting development is that while overall premium growth has slowed, the market share of leading life insurers, particularly the "old seven" (a group of established insurance companies), has not contracted. Data from industry exchanges for the first half of 2026 shows that the bancassurance channel's regular premium market share for these top insurers reached RMB 108.8 billion, an increase of 31% year-on-year. Their market share has climbed from 33.8% in 2025 to 40.38%, suggesting that despite total premium pressure, these leaders are expanding their competitive advantage in high-value business segments like regular and long-term premium policies.
In response to the slower or negative growth, executives from the five listed insurers delivered a consistent message at their mid-year earnings conferences, asserting that the strategic position of the bancassurance channel remains unchallenged. They expect the current period, shaped by regulatory guidance and industry transformation, to present a critical window for deep-seated change. Wu Jian, Vice President of China Life, stated that the company views bancassurance as a "strategic development" channel, committed to a path of "value-driven, professional, and symbiotic bancassurance" that balances scale and value. Wang Lianwen, Vice President of New China Life, noted that after elevating the channel to a strategic level last year, it has now been upgraded to a "core channel" this year, creating a "dual-core driven" strategy alongside the individual agent channel.
The sustained focus on bancassurance is underpinned by its improving value and productivity. In the first half of 2026, CPIC Life saw its new regular premium income from the channel reach RMB 11.72 billion, up 32.6%. The average number of outlets processing regular premiums rose by 4.9% to 4,956, and the average monthly productivity of these outlets increased by 4.1% to RMB 289,000. Ping An Life reported that the new business value from its bancassurance channel grew by 18.0% to RMB 7.05 billion. New China Life also showed robust metrics, with first-year regular premiums from long-term policies up 32.0% to RMB 14.652 billion and renewal premiums increasing 16.0% to RMB 24.643 billion. The company also saw a 20.1% increase in outlets and a 19.8% rise in manpower dedicated to regular premium sales.
Xie Yonglin, General Manager of Ping An Group, highlighted the success of its multi-channel strategy, noting that contributions from non-agent channels have now approached 40% of its business, a figure that would have been hard to imagine three years ago.
The consensus among the five insurers is clear: the bancassurance channel's strategic value now transcends mere premium scale. It is becoming a fundamental pillar for diversified channel operations, managing the full lifecycle of customer relationships, and balancing assets and liabilities. A white paper titled "From Scale to Value: The Leap of the Bancassurance Channel" posits that the channel has moved beyond its old model of pure scale expansion to become a key driver of value creation for listed insurers. With the continued development of regular premium business and deeper customer engagement, the channel is forming a virtuous cycle of simultaneous scale growth and value enhancement, positioning it to remain a growth engine for the life insurance industry.
However, the adjustment phase is far from over. In March 2026, the National Financial Regulatory Administration issued the "Notice on Further Strengthening the Management of Fees in Bank Agency Channels" (referred to as "Document No. 65"). This regulation deepens the governance of fee structures within the bancassurance channel, extending management from commissions to the entire fee framework. Effective July 1, 2026, this directive is expected to prolong the adjustment trend in the channel's business for the latter half of the year.
According to Professor Wang Guojun, "Document No. 65" puts an end to the industry's crude competition based on fee escalation, pushing it into a new era focused on value. This will likely reinforce the trend where the strong get stronger. Wu Jian commented that the "report-action consistency" rules further mandate more refined and standardized fee management, and the industry is currently in an adaptation phase following the new regulations. In the long run, he believes these rules will foster high-quality development, with the bancassurance channel still possessing considerable growth potential.
Wang Lianwen described "Document No. 65" as a landmark step in deepening the "report-action consistency" policy. It emphasizes detailed fee management, clarifies operational responsibilities at each stage, and scrutinizes the authenticity and compliance of bancassurance expenditures, aiming to promote a more orderly and standardized market. The new regulations set higher standards for insurers' capabilities in fee control, compliance, and professional service.
Overall, "Document No. 65" clarifies the regulatory baseline for operations and should enable China's bancassurance market to advance toward high-quality development. The white paper also suggests that with regulatory policies becoming more comprehensive and market demands shifting, the channel is accelerating its move toward a new stage of value-based operations.
In anticipation of the impact from "Document No. 65," the five major insurers have outlined their strategic adjustments. China Life will continue to advance its "6+10+N" channel layout, enhance collaboration with banks, and strengthen professional team building and service quality. CPIC Life will maintain a focus on value in its bancassurance business, targeting high-net-worth clients with participating and increased-sum life insurance products while exploring participating annuity options. In the latter half of the year, it plans to intensify efforts on both participating increased-sum life and annuity products to effectively lower liability costs.