Insurance companies now rank seventh in fund sales, redefining the boundaries of insurance wealth management.
According to the latest data on public fund sales holdings by sales institutions for the first half of 2026 released by the Asset Management Association of China, China Life ranked seventh in the industry with equity fund holdings of 1925 billion yuan, trailing only Ant Fund, Tiantian Fund, and traditional distribution channels such as China Merchants Bank and ICBC.
Industry insiders believe that insurance customers' asset allocation needs are shifting from single insurance products to diversified wealth management solutions. However, for insurers to truly succeed in fund sales, beyond leveraging their customer base, they must also build capabilities in long-term allocation, ongoing engagement, and investor services.
Distributes over 7000 funds; China Life Insurance ranks in top 10 for fund sales
Can insurance companies sell funds? Since the issuance of the "Measures for the Administration of Securities Investment Fund Sales" in 2013, insurance institutions have been recognized as independent entities authorized to conduct fund sales.
In accordance with current regulations, insurance companies, insurance brokerages, and insurance agencies engaging in fund sales must apply to the local CSRC office for registration of fund sales qualifications and obtain a "Securities and Futures Business Operation License."
Wind data shows that in 2015, China Life was approved to distribute public mutual fund products.
Beike Finance reporters found that the "China Life Life Insurance App" offers various fund products, including money market, bond, and hybrid funds, for online subscription.
According to Wind data, as of 10/11, China Life's distribution platform offered more than 7000 funds, including over 1600 equity funds and more than 3500 hybrid funds.
In addition to distributing products from Guoshou Anbao Fund within the same system, China Life also distributes hundreds of products from multiple fund companies including Guangfa Fund and Tiantianfu Fund, totaling 108 fund companies.
In the first half of this year, China Life ranked seventh among fund sales institutions with a retained equity fund scale of 1925 billion yuan, improving by 2 positions compared to the second half of 2025. It is the only insurance company to make it into the top 100 fund distribution list. The top three are Ant Fund, China Merchants Bank, Tiantian Fund, ICBC, China Construction Bank, and Bank of China.
Zhu Junseng, former head of research and professor at the Center for Insurance and Pension Studies, PBC School of Finance, Tsinghua University, told Beike Finance that this indicates large life insurance companies now have a solid foundation of wealth management clients and fund sales capabilities. The asset allocation needs of insurance customers are expanding from single insurance products to diversified wealth management products.
However, in terms of the scale of stock index funds held, China Life reported only 69 billion yuan in the first half of the year, showing a significant gap compared to top sales agencies.
Zhu Junsheng stated that insurance companies do not hold a clear advantage over banks, brokerages, and internet platforms in ETF ecosystems, online distribution, or high-frequency standardized sales. Their true strength lies not in "selling funds more effectively," but in their ability to build asset allocation strategies around long-term customer relationships.
CPIC Life Insurance: New Mutual Fund Distribution – Building Scale and Sustained Client Engagement Are Paramount
Beike Finance reporters noted that, in addition to China Life Insurance, 4 other life insurance companies—including Ping An Life, Sunshine Life, and Taikang Life—as well as 4 non-life insurance institutions such as HSBC Insurance Brokerage and Fangde Insurance Agency, are selling mutual fund products. Except for HSBC Insurance Brokerage and Taikang Life, whose public offering distribution licenses were approved in 2023, the approval dates for all other institutions fall between 2014 and 2016.
To date, 9 institutions have collectively distributed approximately 2.77 mutual funds. Among them, China Life, Sunshine Life, and Xuan Yuan Insurance Agency have all partnered with over 100 fund companies, distributing thousands of funds each. Taikang Life distributes the fewest, with only 41 funds.
In 8 this year, the China Securities Regulatory Commission's official website indicated that the "Registration of Institutions Engaged in Public Fund Sales" for China Pacific Life Insurance Company Limited has entered the material submission phase. On 8/19, it proceeded to the initial written feedback stage.
Public records show that CPIC Life was established in 2001 and is a life insurance company under China Pacific Insurance. If this registration is approved, it will add another insurance-backed player to the fund sales sector.
Zhu Junsheng stated that funds are a key standardized product in wealth management. For life insurance companies, obtaining fund sales qualifications is not merely about adding another product to their portfolio; it is more critical for completing their wealth management product ecosystem. This enables comprehensive asset allocation—spanning insurance, savings, funds, and pension products—that aligns with customer needs.
However, obtaining eligibility is just the first step for insurance companies to enter fund sales. There is still a long way to go to realize true synergistic value from this business.
Overall, compared to banks, brokerages, and third-party fund distributors, insurance companies show significantly lower participation in the fund distribution market and lack a clear advantage in assets under management.
"The defining characteristic of insurance companies is their direct access to customers, but their traditional customer management models do not fully align with mutual fund distribution," said Zhu Junsheng. Banks excel in accounts and cash flow, securities firms in investment research and trading, and internet platforms in traffic and technology. In contrast, life insurers' strengths lie in long-term customer relationships, extensive sales networks, insurance protection and savings scenarios, and brand trust. The fact that some institutions have exited fund distribution underscores that obtaining a license alone is insufficient to achieve scale in fund agency sales.
In the previous 2023 years, an insurance sales service company had already surrendered its fund sales license. In 3 of that year, Yongxin Insurance Sales Service Co., Ltd. submitted an application to the China Securities Regulatory Commission (CSRC) to cancel its public mutual fund sales license. In accordance with relevant regulations such as the "Administrative Licensing Law" and the "Securities Investment Fund Law," the CSRC decided to revoke its public mutual fund sales license. This makes Yongxin Insurance Sales Service Co., Ltd. the first insurance agency to voluntarily surrender its fund sales license.
"This means that for insurance companies to truly succeed in fund sales, they need to strengthen their capabilities in fund product selection, asset allocation, professional sales, and ongoing client support—not necessarily expand their customer base," said Zhu Junsheng.
