TOTAL premium income of Shanghai insurance sector fell in the first half this year from 2012 due to slow economic growth, weaker market demand, tight liquidity and poor investment returns, Shanghai branch of the Chinese Insurance Regulatory Commission said today.

Premium income was 45.76 billion yuan in the first half, 1.4 percent lower from last year, compared with a nearly 10 percent growth recorded last year, the local regulator said.

Increase of premium income of property insurers slowed to 11.3 percent from last year's 12.7 percent while the income of life insurers dropped 7.3 percent, reversing last year's 9 percent growth.

The regulator said Shanghai's insurance market is in a "deep correction" due to economic and market reasons, and the situation may continue into the rest of this year.