APAC Focus: China Insurance Sector "debunking the AI disruption theme" Zhou

Research evidence excerpt

APAC Focus: China Insurance Sector "debunking the AI disruption theme" Zhou

Global Research

22 May 2026ab

China Insurance Sector Equities

ChinaAPAC Focus: debunking the AI disruption themePlease

Insurance

Charles Zhou

Analyst

charles.zhou@ubs.com

+852-3712 3887

Jessica Chan

jessica.chan@ubs.com

+852-3712 2507

Dennis Bai

dennis.bai@ubs.com

+852-3712 2473Whileinvestors recognise AI benefits, concerns have been raised about: 1) AI

disintermediation eroding insurers' strengths in traditional distribution; 2)

autonomous driving (AD) shrinking the auto insurance market if premium rates are

cut on a lower accident rate; and 3) AI's deflationary impact suppressing the

interest rate. We think the concerns are overdone based on our risk score analysis

and expert interviews. China is likely to be less disrupted than developed markets

due to structural differences. We reiterate Buy on Ping An-H and AIA based on

lower disintermediation risks in the life segment and strong AI capabilities.

AI redefines insurance distribution, it does not eliminate it

AI brings productivity gains across the value chain. Some investors are concerned that AI

would drive disintermediation. While we disagree, AI could transform the value

proposition for distributors - from transactional to personalised and relationship-driven

advisory. Our scoring model suggests AI disintermediation risk varies across segments

with the highest risk for P&C, followed by life and reinsurance. We believe China is less

likely to be disrupted mainly due to differences in the regulatory environment and

industry structure.

Autonomous driving may not shrink the auto insurance market

China insurers may not cut auto premium rates aggressively given tight regulations. We