BEIJING, April 26 -- China's insurance premiums surged 42.2 percent year on year to 1.2 trillion yuan (184.44 billion U.S. dollars) during the first quarter (Q1) of the year, an official with the insurance watchdog said Tuesday.

Insurers paid out 289.13 billion yuan in compensation during the period, up 25.1 percent from one year earlier, Bai Yun with the China Insurance Regulatory Commission told a briefing.

Life insurance premiums soared nearly 88 percent year on year to 579 billion yuan.

The Internet is really transforming the way insurance is sold in China, Bai said.

Online life insurance premiums skyrocketed 554.86 percent from one year earlier to hit 9.3 billion yuan.

Total assets of the country's insurance companies rose to 13.85 trillion yuan at the end of March, up 12.09 percent from the start of the year.