Chang Sha Wan Bao·2025-06-05 11:54Core Viewpoint - The recent trend of branch closures in the insurance industry reflects a strategic shift towards digitalization and high-quality development, moving away from traditional marketing models reliant on physical locations [1][2][4]. Summary by Sections Industry Overview - Over 1,000 insurance branches have been closed nationwide in the first five months of 2025, marking a year-on-year increase of over 20% compared to the same period in 2024 [2][3]. - Life insurance companies account for approximately 80% of the branch closures, with 805 branches shut down, while property insurance companies closed 223 branches [2]. Strategic Adjustments - The closures are part of a broader trend of "thinning" in the insurance sector, driven by the need for cost optimization and improved operational efficiency [4]. - The shift towards digital channels has reduced the reliance on physical branches, as online purchasing rates for insurance have increased from 73% in 2023 to 78% in 2024 [4][5]. Historical Context - The trend of branch closures has been ongoing for several years, with significant increases noted: 971 branches closed in 2020, 2,197 in 2021, peaking at 2,966 in 2022, and then declining to 2,065 in 2023 [3]. Future Outlook - Despite the rise of online channels, physical branches still hold core value, particularly for high-value long-term insurance products that require trust-building through face-to-face interactions [5]. - The role of physical branches is expected to evolve into "experience centers" and "service centers," complementing online channels to create a comprehensive customer service network [5].