China will be the world’s second-largest insurance market in the coming decade, German insurer Allianz said in a report, citing the fasting growing middle class as one of the major reasons.

China’s insurance market will grow at an annual growth rate of 12.1 percent in the coming 10 years, exceeding Japan to become the largest insurance market in Asia and the world’s second-largest, according to the report.

The rapidl growing middle class, people’s longer life expectancy and solid economic development will be the key factors fueling customers’ demand for more insurance product, the report said.

Industry statistics showed that China’s middle class will account for 40 percent of the country’s urban population by 2015, up from the current 25 percent. And people’s average life span is expected to be 75 years old by then.