Insurers are urged to expand their coverage and penetrate deeper in the market in the world's second-biggest economy during the 12th Five-Year Plan from 2011 to 2015, according to the insurance regulator.

The insurance penetration in China is less than half of the world's average and there is room for growth, said Wu Dingfu, chairman of the China Insurance Regulatory Commission, during his visit to Jiangxi Province.

Wu said as China's economy grows under the new five-year plan, the demand for insurance is likely to increase and this will help insurers widen coverage and penetrate deeper into the market, Wu said.

The concept of preparing for the worst when everything is fine, readying for old age and death when one is still young, and ensuring children's futures when they are just starting school have been slow to catch on in China.

The premium income of Chinese insurers hit 805.66 billion yuan (US$125 billion) in the first six months, growing 13 percent from a year earlier, the CIRC said.