Overseas insurers seek evolving needs
By Zhang Fengming |
June 1, 2011, Wednesday
|
Print Edition
Print Edition
OVERSEAS insurers are keen to tap opportunities in China's growing insurance sector although their penetration rate in the world's second largest economy is currently low, market watchers said.
These insurers, defined as companies that hold more than 50 percent stake in joint ventures or own wholly-owned entities in China, accounted for 4.4 percent of China's insurance market in 2010.
"Major international insurers are keen to grow in emerging markets, especially India and China," said Adrian Liu, general manager of life insurance consulting for Towers Watson in China. "Investments are expected to continue coming to China to meet its evolving insurance needs."
China has opened its insurance sector under commitments it made on entry to the World Trade Organization. Overseas insurers can set up wholly-owned entities in the property and casualty sectors. International insurers can hold up to 50 percent in life insurance joint ventures.
China's aging population and growing economy are attracting overseas insurers, including Allianz and AXA, to deepen their roots in the country.
Chen Wenhui, assistant chairman of the China Insurance Regulatory Commission, said the Chinese insurance industry benefits from the opening-up and the CIRC welcomes more overseas insurers to expand in the domestic health insurance and pension market as China's population grows older.
A recent HSBC survey revealed that about 40 percent of Chinese mainland respondents said they relied on the government for income after retirement, the highest reliance among the 17 markets studied and above the global average of 16 percent.
Another area for promising growth is the rising demand for education and retirement products among the Chinese.
These insurers, defined as companies that hold more than 50 percent stake in joint ventures or own wholly-owned entities in China, accounted for 4.4 percent of China's insurance market in 2010.
"Major international insurers are keen to grow in emerging markets, especially India and China," said Adrian Liu, general manager of life insurance consulting for Towers Watson in China. "Investments are expected to continue coming to China to meet its evolving insurance needs."
China has opened its insurance sector under commitments it made on entry to the World Trade Organization. Overseas insurers can set up wholly-owned entities in the property and casualty sectors. International insurers can hold up to 50 percent in life insurance joint ventures.
China's aging population and growing economy are attracting overseas insurers, including Allianz and AXA, to deepen their roots in the country.
Chen Wenhui, assistant chairman of the China Insurance Regulatory Commission, said the Chinese insurance industry benefits from the opening-up and the CIRC welcomes more overseas insurers to expand in the domestic health insurance and pension market as China's population grows older.
A recent HSBC survey revealed that about 40 percent of Chinese mainland respondents said they relied on the government for income after retirement, the highest reliance among the 17 markets studied and above the global average of 16 percent.
Another area for promising growth is the rising demand for education and retirement products among the Chinese.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
