The ongoing wave of consolidation in China's insurance intermediary sector is revealing stark valuations, with some firms being offered for sale at a base price of just one yuan.

On June 22, Sino-American International Insurance Sales Service Co., Ltd.'s 100% equity stake was listed for transfer with a floor price of 0.0001 million yuan, equivalent to one yuan. The company, wholly owned by PICC Life Insurance, has a negative net asset value of -7.08 million yuan, is insolvent, and currently has no active employees. A prospective buyer would not only pay the symbolic one-yuan price but also assume 16.926 million yuan in debts and 1.26 million yuan in employee compensation, bringing the actual effective cost to over 18 million yuan.

Just three days later, on June 25, the 100% equity stake of Zhongtong Sunshine Insurance Brokerage Co., Ltd. was also listed, with a significantly higher floor price of 128.6577 million yuan. This firm is wholly held by Hunan Communications Industry Service Co., Ltd., part of the China Telecom system. It reported revenue of 48.49 million yuan and a net profit of 7.55 million yuan in 2025, indicating ongoing operations, yet it has still been put up for sale.

These two cases represent just a small fraction of a broader industry exodus. According to statistics, as of June 18 this year, 124 insurance intermediary companies have exited the market, exceeding the 110 exits recorded in the same period last year.

Scale of the Industry Shakeout

Throughout 2025, 26 professional insurance intermediary legal entities and 984 branch offices were deregistered. This brought the total number of national insurance intermediary legal entities down to 2,513. Several prominent groups, including Mintai'an Insurance Surveyors & Loss Adjusters Group, Hebei Yanzhao Insurance Sales Service Group, and Shengyuanxiang Insurance Sales Service Group, have successively surrendered their intermediary licenses. Other firms like Beijing Guoteng Zhongbao Insurance Brokerage, Shanghai Jingxi Insurance Brokerage, Zhongtong Sunshine Insurance Brokerage, and Sino-American International Insurance Sales Service are attempting to transfer their licenses, though finding buyers remains uncertain, as precedents set by firms like Taihang Insurance Brokerage and Beijing Gongxinying Insurance Brokerage show.

Market Dynamics Amid the Shakeout

The cooling demand for intermediary licenses does not signify a loss of demand for the intermediary channel itself. In 2025, premium income generated through all intermediary channels reached approximately 5.1 trillion yuan, with the professional intermediary channel contributing 962.23 billion yuan. In the first quarter of 2026, new premium income from the life insurance professional intermediary channel surged to 15.7 billion yuan, a year-on-year increase of 44%. While smaller, tail-end firms are accelerating their exit, leading institutions like Mingya Insurance Brokerage, Ant Insurance Services, Ping An Chuangzhan, and Datong Insurance Services continue to capture business, indicating a redistribution of market share within the intermediary landscape.

Challenges in Finding Buyers

The number of listed intermediary assets for transfer is increasing, but buyers are scarce. Public data shows that from 2024 to 2025, regulators revoked or deregistered 3 intermediary groups and 57 professional intermediary legal entities, while clearing out 3,730 intermediary branches and 226 concurrent-agent institutions. The exit trend is not limited to small players. By the end of 2025, only two of the former five national intermediary groups remained: Fanhua Insurance Sales Service Group and Meichen Insurance Brokerage Group.

The list of exiting national firms is also growing, with companies like Jiuzhou United Insurance Brokerage and Guizhou Taibo Insurance Brokerage having their licenses deregistered or declared bankrupt.

A Cooling Transaction Market

The transfer market reflects the industry's challenging conditions. Listings from state-owned or state-backed entities, like Zhongtong Sunshine (backed by China Telecom) and Sino-American International (backed by PICC Life), are becoming more common. However, listings do not guarantee sales. For instance, Taihang Insurance Brokerage's 100% equity failed to sell at auction in May, and Beijing Gongxinying Insurance Brokerage's 65% stake went through seven unsuccessful auctions between 2022 and 2023 before its license was ultimately revoked.

Since March, multiple insurance intermediary equity stakes have been auctioned on platforms like Alibaba's judicial auction site, often attracting many viewers but few serious bidders, leading to frequent failed auctions. This contrasts sharply with the past, when national insurance brokerage licenses were considered scarce assets commanding high premiums. Now, market valuations for some have fallen to the 15-18 million yuan range, and transactions remain sluggish, signaling a significant revaluation of these licenses.

A similar cooling trend is visible on the NEEQ (New Third Board). The number of listed insurance intermediaries has dwindled from a peak of over 30 to single digits, as firms like Huakai Insurance have delisted. For small and medium-sized intermediaries, the declining financing benefits and persistent costs of maintaining a listing have reduced its appeal.

Diverging Fortunes: Growth at the Top and New Entrants

The high number of exits does not indicate a lack of market demand. Robust premium growth through intermediary channels confirms ongoing vitality. Leading firms are capitalizing on this demand. For example, Mingya Insurance Brokerage reported a total premium growth of over 55% year-on-year for January to April 2026.

The top five firms by insurance business income in 2024—Ant Insurance Services, Ping An Chuangzhan, Chengwei Insurance, Mingya, and Datong Insurance Services—collectively generated significant revenue, demonstrating the channel's strength.

This underlying demand also explains why new players continue to enter the market even as others exit. Automakers like BMW and Toyota have established or acquired insurance brokerage arms in China. China Post gained approval to operate insurance agency business in late 2025, leveraging its vast network of over 60,000 outlets. Other corporations, including China Communications Construction and Chow Tai Fook, have also made acquisitions in the sector.

In today's insurance intermediary industry, a clear divergence is underway: leading institutions are consolidating their market position and expanding their share, while tail-end firms are being forced out. The firms that manage to remain are the proven survivors in an increasingly competitive environment.