Premium income for non-auto internet insurance surged 80.25 percent to reach about 18.6 billion yuan ($2.9 billion) in China last year, compared with a continuous decline of auto-related insurance income, a report said.

Such growth may be driven by companies' innovation in products and people's growing habits of online consumption, according to a report released by the Insurance Association of China on Tuesday.

Most popular products were online shopping-targeted freight insurance and travel accident insurance, as put forward by insurers such as Zhangan Insurance and Cathay Insurance, it said.

Other internet products included health insurance, liability insurance and credit insurance, it said.

According to the report, premium income for domestic internet property insurance reached 49.3 billion yuan last year, to which non-auto related business contributed 37.75 percent, up 17.18 percentage year-on-year.

However, premium income for auto-related business decreased 23 percent compared with 2016, it said.

To deal with the decline, the report suggested potential in county-level and third- and fourth-tier cities, where more families tend to own a car.