During the 10th Five-year Plan (2001-2005) period, China's gross domestic product (GDP) posted an annual growth of 8.8 percent, while insurance sector saw an annual growth rate of 35 percent, exceeding financial sector's 15.8 percent.

China's per capita life insurance premiums amounted to 30.5 U.S. dollars last year, compared with the international average of 299.5 U.S. dollars, while the property insurance premium was 15.8 U.S. dollars, compared with the international average of 219 U.S. dollars.

Under the 11th Five-year Plan, China's insurance revenue is expected to exceed one trillion yuan (125 billion U.S. dollars) by the end of 2010, and insurance assets are expected to hit five trillion yuan.

"This may indicate that China's insurance sector may enter a fast growth period, with a growth rate of more than 15 percent in the next five years," said Huang Huamin, an analyst with CITIC Securities Co. Ltd.

The growing population, rising middle class and tax breaks would also contribute to the fast development, Huang said.

Last year, 40.2 percent of China's population were aged from 25 to 49, the group with the strongest purchasing power, while the 15 to 24-year-old group accounted for 16.5 percent of the population.

China's insurance premiums are predicted to hit 600 billion yuan this year, according to Zhou Yanli, vice chairman of China Insurance Regulatory Commission.

Total assets of China's insurance companies amount to 1.8 trillion yuan, 2.8 times more than in 2002; and the total capital of the industry reached 130 billion yuan, with foreign investment as the main driving force.