China Insurance News
As the Chinese economy continues to grow and expand the country is being seen as a major international market, and this is drawing many corporations from all over the world to Beijing and Shanghai in an effort to build their profiles in the Mainland market. Many of these companies have no history of working in China and have encountered a myriad of difficulties stemming from the cultural confusion.
The difficulties that foreign corporations are having in the Chinese market are readily viewable in the nation's insurance industry which is, for the most part, dominated by Chinese insurance companies.
China has, at current count, 135 insurance companies working in and around the country; however foreign corporations and investment only account for 7% of the total Chinese insurance market. This is despite the fact that over 47 insurance organizations located in China are funded by foreign owned entities, showing that despite the eagerness of foreign enterprises to enter the Chinese market they are having great trouble doing so. There are some exceptions to this trend though, with companies such as Royal and Sun Alliance, who have a history in China dating back to 1853, and it is this experience that has allowed R&SA to become one of the most successful foreign insurers on the mainland.
One of the main reasons that foreign insurance companies are trying so hard to enter the Chinese market is due to the increase in expatriates in the country. In recent years more and more overseas nationals have been relocating to the People's Republic of China in order to capitalize on the massive growth in the economy and take advantage of the unique lifestyle and opportunities that the mainland offers. With the increase in expatriates also comes the need for western style insurance and protection, and as a result the interest from international and foreign based insurance organizations towards the Chinese market has also boomed.
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