The People's Insurance Company (Group) of China (1339) investor relations material

Industry trends and regulatory environment

• Non-auto insurance faces challenges from irrational competition, underpriced premiums, and chronic underwriting losses, prompting a shift toward compliance and quality-driven growth.

• Regulatory reforms, including the Circular on Strengthening the Supervision of Non-Auto Insurance Business effective November 2025, aim to standardize product development, premium management, and market conduct.

• Industry-wide rectification measures focus on rational competition, cost reduction, quality improvement, and efficiency enhancement.

Market potential and growth drivers

• The 15th Five-Year Plan (2026-2030) highlights significant growth opportunities in property, liability, tech, health, agriculture, and green insurance, supported by rising industrial output, R&D spending, and consumer expenditures.

• By 2030, estimates include over RMB30 trillion in exports, RMB4.5 trillion in R&D, and more than 450 million housing units, with robust expansion expected in personal, health, and agricultural insurance.

Strategic priorities and business model

• The focus is on building core competitiveness through the "Five Priorities" and "Six Reforms," aligning with national economic and social development goals.

• A comprehensive business process covers client management, product development, sales, underwriting, claims, and risk reduction, supported by digital and AI technologies.