Former PBOC Governor Dai Xianglong proposed that large commercial banks should strive to expand the asset scale of their invested insurance companies to rank within the top 10 Chinese insurance enterprises.
On January 11, 2026, at the 30th China Capital Market Forum, Dai Xianglong, the former Governor of the People's Bank of China, shared his views on "leveraging the capital market's pivotal function." One of his proposals set new requirements for bank-affiliated insurance companies, stating that "large commercial banks that have not yet established insurance companies or trust companies should do so promptly." Dai Xianglong pointed out that large commercial banks could be supported in merging with and acquiring small and medium-sized domestic securities and insurance companies. After non-banking financial business income exceeds 15% of the bank's total revenue, large commercial banks could be restructured into large bank holding groups.
Dai Xianglong further proposed striving to expand the asset scale of insurance companies invested in by large commercial banks to rank within the top 10 Chinese insurance enterprises. The goal is that by 2035, the total assets of non-banking financial companies under the five large commercial banks will approach 10% of their total consolidated assets.
Currently, there are 12 "bank-affiliated" insurance companies in China, comprising 10 life insurers (ICBC-AXA Life, Everbright Sun Life, CCB Life, Bank of Communications Life, ABC Life, Cigna & CMBC Life, Sino-Dutch Life, CITIC Prudential Life, BOC Samsung Life, and China Post Life) and 2 property insurers (CCB Property & Casualty Insurance, and Bank of China Insurance).
According to statistics, as of the end of the third quarter of 2025, among the large bank-affiliated life insurers, only China Post Life's total asset scale ranked within the industry's top 10. The total assets of the two bank-affiliated property insurers did not make the top 10, indicating significant room for growth.
Based on total asset ranking, unit: 100 million yuan.
Furthermore, the market share of these 12 insurers has potential for further expansion. In the first three quarters of 2025, the insurance premium income of 73 life insurance companies totaled 3,135.045 billion yuan. The combined premium income of the ten bank-affiliated life insurers was 433.558 billion yuan, accounting for 13.83% of the total life insurance industry income. The share of the two bank-affiliated property insurers is even smaller, suggesting substantial potential. Additionally, China Post Life accounted for 34.9% of the income among bank-affiliated insurers, demonstrating a "leading effect" within this group. If other bank-affiliated insurers seize opportunities, they could further increase their market share.
Amid the interest rate downtrend, Dai Xianglong's proposal aligns with the goal of "leveraging the capital market's pivotal function," aids the transformation and development of large commercial banks, injects stable long-term funds into the capital market, and broadens financing channels for the real economy, representing a win-win systemic strategy.
From the perspective of the banks' own development, large commercial banks already possess a foundation for integrated operations. According to Dai Xianglong, by the end of 2024, the five large banks had established 51 non-banking financial companies, including 18 engaged in asset management businesses (wealth management, trust, insurance asset management, fund management, financial asset investment companies). However, the absence of direct insurance and trust operations leaves a gap in their "service portfolio."
In terms of capital characteristics, insurance funds, particularly life insurance funds, are characterized by long duration, large scale, and stable risk preference, making them one of the highest-quality "long-term funds" in the capital market. They can be directly invested in assets like stocks, bonds, and equity funds, highly consistent with the objective of "promoting long-term capital entry into the market."
Looking ahead, large commercial banks expanding into the insurance sector have two primary pathways: first, independent initiation by directly applying for insurance or trust licenses and building the business system from scratch, ensuring full control, though this approach imposes strict requirements on the initiator's capital strength, talent development, and risk management capabilities.
Second, direct acquisition, which allows for rapid acquisition of license resources and operational experience, shortening the cultivation period and reducing initial operational risks. According to incomplete statistics, by the end of 2025, over 50 equity transfer announcements involving insurance institutions had been disclosed nationwide, affecting 30 insurers including Huanghe Property & Casualty Insurance, Minsheng Life Insurance, Great Wall Life Insurance, and ChengTai Property & Casualty Insurance, with a total minimum transfer price exceeding 5 billion yuan, an increase of over 30% compared to 2024.
Nevertheless, it must be noted that the insurance industry has already formed a certain market structure; for instance, the top ten life insurers hold 70-80% of the market share. Large commercial banks entering the insurance sector will inevitably face intense competition. Furthermore, the insurance industry is a long-term business, often summarized by the saying "break-even in seven to eight years." Faced with long payback periods and fierce industry competition, the "enthusiasm" of commercial banks to establish insurance companies might be somewhat tempered. However, from a long-term perspective, the potential and synergistic effects of insurance operations remain attractive.
When acquiring or establishing insurance companies, large commercial banks need to position themselves based on their own advantages, for example, leveraging their corporate and retail customer bases to launch differentiated products rather than engaging in homogeneous competition. Moreover, whether through acquisition or establishment, they should proactively cultivate relevant talent and strengthen compliance and risk management.
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