The China Insurance Regulatory Commission (CIRC), the country's top insurance regulator, has announced that China became the world's third largest insurance market last year, from sixth five years ago.

The growth was seen in the last five years, with China's insurance market valued at Rmb12 trillion  (US$1.83 trillion) last year, more than double the total asset for the entire market in 2010, which was Rmb5 trillion (US$761 million), according to the CIRC.

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The commission added that the country's insurance premium last year was recorded at Rmb2.4 trillion (US$365 million), growing at a rate of 13.4 percent annually.

In 2010, China was considered as the world's sixth largest insurance market but the market has grown tremendously in the past five years.

According to the CIRC data, profits of the whole insurance sector in 2010 was just Rmb83.7 billion (US$12.74 billion). Last year, the sector's profit totaled Rmb282.4 billion (US$42.97 billion).

The official Xinhua news agency has reported that the growth of China's insurance market can be attributed to the country's growing economy and the Chinese people's improved standards of living.

The sector has grown tremendously over the past five years that it accounted for 26 percent of the growth of global insurance market last year, the Xinhua news said.

The CIRC and other financial regulators in China have long been monitoring the activities of insurers in the country and introduced reforms to ensure that both the insurers and the insured are well protected in the growing market.

Recently, authorities have allowed insurance funds to invest in major infrastructure projects in the country.

In January, the regulator allowed Chinese insurance firm Ping An to issue the country's first overseas senior bonds.

"The move aims to expand direct debt financing channels, optimize capital structure and help the company grow its business overseas," Ping An said in a statement. 

TagsChina Insurance, China Insurance Market