Foreign insurers face obstacles in China
4 September 2008About 45 foreign insurance companies, which have united with the Chinese partners for activity in territory of the country, have collided with the rigid restrictions, established by the state on structure of joint ventures, opportunities of branches’ accommodation and the list of services, offered to clients.
The share of joint ventures makes 6 percents in the market of insurance services of China. The foreign insurance companies expect increase in sales in life insurance market on 30-50 percents, in the market of property and accidents insurance is parameter is expected to rise on 20-40 percents. The Majority of the interrogated analysts assume that the share of the foreign insurance companies in the market of China will reach 10 percents in 2011.
However, both foreign, and the Chinese insurance companies collide with a strong competition from powerful Chinese banks. Recently banks were allowed to buy shares in the insurance companies and to expand the offer of banking-insurance products.
Negative influence on development of foreign insurance business in China is also provoked by factor. The low level of a professional training and high fluidity of the personnel do not allow companies to reach to the desirable results.
- Chinese insurance companies invest $39 billion in the foreign share markets
- Insurance market has passed a boundary
- What for the insurance to the tourist? Compulsory insurance
- Insurance group “Uralsib” will be sold to foreigners
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