The insurance industry is expected to be on the track of steady development in China as the economy rapidly recovers from the COVID-19 pandemic, executives of global reinsurer Swiss Re said.

China's economic recovery this year is likely to be consumption-led and see stronger growth in contrast to the global economic slowdown, said Christian Mumenthaler, CEO of Swiss Re.

"We observed that the pandemic had a lasting impact on the risks and demand for insurance," Mumenthaler said.

According to the Swiss Re Institute, global demand for risk protection has increased after pandemic, people are now more used to online interaction and rate hardening in non-life commercial insurance lines continues.

"We still see China has huge potential with strengthening economic fundamentals," Mumenthaler said.

This year, the Chinese government has set its GDP growth target of around 5 percent, indicating the country's confidence in achieving a solid economic growth.

With this target, Mumenthaler said: "We think the government is probably a bit cautious because of the current environment, and it sends a signal that quality of growth is more important than just focusing on numbers."

At the recently concluded China Development Forum 2023, which was themed Economic Recovery: Opportunities and Cooperation, Swiss Re submitted a report on improving risk protection for residential housing and promoting sustainable development of rental housing in China.

"China's focus on high-quality development and common prosperity presents significant opportunities for the reinsurance industry," Mumenthaler said.

Swiss Re prioritizes business in areas like aging and health, agriculture, natural disasters and decarbonization, in line with Chinese economic trends and the government's agenda.

The issue of an aging population has been attracting attention in China in recent years, Mumenthaler said.

It is a challenge faced by Eastern and Western societies, the executive said.

"But one where China is uniquely equipped to develop nursing homes and facilities or homes for elderly, which is extremely important."

"It's a whole ecosystem that needs to emerge and we certainly have the technology because we have experience learned from other parts of the world. We can help on the risk transfer side," Mumenthaler said.

In response to the country's development of the digital economy and green transition, Swiss Re said it has doubled down on digital transformation to develop innovative and technology-based solutions with its clients and partners.

"Digitalization is definitely a key driving force for the Chinese economy going forward, and it will definitely make a difference in the reinsurance industry," the CEO said.

In the country, Swiss Re has launched digital solutions including the automated insurance underwriting platform Magnum and the agricultural insurance risk management platform SRAIRMP, providing technological support to clients across industries and the entire reinsurance value chain.

"I strongly believe that Swiss Re is well positioned to support China's development with our global risk insights and expertise and solid partnerships established in China," Mumenthaler said.

In 2022, the first wetland carbon sink Gross Ecosystem Product insurance scheme was launched in Ningbo, Zhejiang province. Swiss Re played a major role in supporting the clients with its risk management expertise and product innovation capability.

Swiss Re's business strategy is aligned with China's 14th Five-Year Plan (2021-25), said Ivan Gonzalez, CEO of Reinsurance China and president of Swiss Re China.

"I think that based on all that expectation around recovery, we would hope that a lot of the initiatives that we put forward in China over the last few years go in line with the kind of the overall growth that you would expect," Gonzalez said.

"We are optimistic that some of these initiatives will bear fruit and that we will be able to continue to support the development of the Chinese market," he added.