Category: Insurance tips Release Date: 2006-08-01
Since joining the WTO, the great potential of China's insurance market, so a lot of foreign companies covet. Not long ago, the State Council Development Research Center, Institute of Market Economy in an insurance market research report shows that China's current foreign insurance companies, consumer expectations of higher, 74.1% thought that foreign insurance companies, service is good, 82% of people believe that foreign insurance companies, high-quality personnel, 77.9% said that foreign insurance companies, insurance products were good, 71.7% of the people consider that their claims better, 70.1% of the people that its good reputation, 57.2% of the people that their products easy to buy. Side is willing to come to open up markets, extended a warm welcome to the party, but such "love and" the harmonious union of all foreign insurance companies not to bring good luck.
Rough encounter with the Chinese-funded insurance companies for home compared to the advantages of foreign companies is indeed obvious. Has accumulated decades of experience, a good reputation and high level of expertise, financial strength and strong, but they can not guarantee that in China, this particular market, certainly not lose out.
In February this year, has been stationed in China for nearly 10 years, Lincoln Financial Group, the reinsurance decision to withdraw from China. In June, the Swiss life insurance and pension companies (referred to as Swiss Life) in Beijing and Guangzhou, two offices have closed, declared the company's five-year journey in China suspended. Although from a business perspective, such a retreat is very normal, but the Chinese insurance market for the accumulation of foreign-invested enterprises under the terms of the city, these two "allies" of the withdrawal must say is a remarkable signal.
According to analysts, the two companies withdrawing from the Chinese insurance market in addition to their own specific reasons, similar reasons: First, "inability to adapt." China's insurance industry is not long, it can not be fully with international standards, foreign insurance companies to enter China somewhat unsuitable insurance industry requires a process of indigenization. Peking University doctoral mentor, International Insurance Society of host Sun Qixiang believe that foreign insurance companies require at least two or three years time to understand the local market, data collection, familiar with the subject matter of insurance of the risks and designing products, building products sales network, training, sales personnel.
The second is the transfer of global strategy. It is understood that the United States, "9.11" incident, Swiss Life in 2001 profit from 924 million Swiss francs in 2000 fell to 124 million Swiss francs, this year, in February, the new president of Chela Ousky have to reduce the scale of operation , the company focus on insurance business placed in the country; Lincoln Financial Group is also the strategic adjustment of the consideration for their own decision to withdraw from China.
Third, the market at hand no idea. China's current low level of financial market opening, China's insurance market itself is imperfect, domestic residents of insurance awareness and lack of knowledge, to some extent will foreign companies to invest in China's insurance market has brought a lot of uncertainties.
Localization is the holy grail In contrast with these two companies, American International Assurance Company from entering China's insurance market has been through decades of development, AIA has already come out ahead. It is understood that the U.S. allies, following the establishment of branch offices in Shanghai in 1992, after the business license obtained in 1995 to establish branch in Guangzhou in 1999, be allowed to conduct life insurance business in Shenzhen and Foshan. In June this year, American International Insurance Company Beijing Branch formally established and started to Beijing to provide life and accident insurance products and services. In addition, the AIA Suzhou, Dongguan and Jiangmen branch offices and companies will also open.
It is understood that AIA insurance market in China have developed smoothly, but also increasingly by the Chinese government, industry and market recognition. According to statistics, as of last year, allies of income in China reached a total of more than 10 billion yuan. AIG's life insurance market share in Shanghai reached 9.31 percent, far higher than other foreign-funded life insurance companies. In the Chinese and foreign insurance companies, the allies came in the fourth. Since June this year, AIA Beijing Branch has been officially opened in less than three months time, the company sold over 2,000 copies of insurance policies. The company's general manager Mr. Xu Shuijun said the company was founded, the court in Beijing has not yet a firm foothold, but the current development is still very smooth.
Xu Shui-jun said that, in fact, any company at its inception will encounter some difficulties, foreign-funded enterprises to enter China, even more so. AIA Beijing Branch was established mainly to the difficulties encountered by the shortage of talent and localization issues. The company was founded, the recruitment of talent was a top priority. But Mr. Xu said, because Beijing is China's relatively high level of education areas, various kinds of talents are abundant in the recruitment of staff, therefore there should not be much of a problem.
Localization is to ensure that foreign insurance companies in the smooth development of China, a more important factor. Although foreign companies have a high level of technology, advanced management concepts and strong financial strength, but its mode of operation must comply with local community needs, local customs and people's ideas. Foreign companies in China has achieved a very good development, the need for a process of adaptation when we fail to deal with localized issues, and impede the future.
The Chinese market is not easy, whether the United States won the Lincoln Financial Group and Swiss Life's halfway out, or American International Assurance's thriving, have condensed out of foreign-funded enterprises in the Chinese market entrepreneurship is not easy. From the China Insurance Regulatory Commission was informed that, there are already 34 foreign insurance operators allowed to operate in China, there are 19 countries and regions, 112 foreign insurance companies in China's 14 cities and set up 199 representative offices. Statistical data show that since 1999, foreign companies to enter China's insurance market has been the development of business in general is quite good.
It is reported that foreign insurance companies, premium income in 2001 reached 3.2 billion. In Shanghai and Guangzhou, foreign life insurance company's share of the market share of 14.4% and 11.8%, property insurance market share of 6.7% and 1.5% respectively. Successful experiences from the AIA can also be a glimpse of these foreign companies in the Chinese market is growing so fast causes.
Relevant persons, foreign-funded insurance companies to enter China's insurance market can promote the upgrading of products; to expand the market size, intensified market competition, breaking the monopoly situation; can promote the Chinese-funded insurance companies improve the management level, enabling Taiwan to complete the formation of the insurance system, while also help accelerate China's insurance industry in the process of internationalization. Therefore, we hope that these foreign companies in China, all the best.
