Zurich Insurance, Switzerland’s largest insurer, is looking for a joint endeavor partner in China, as the nation’s current easing of monetary sector rules, tempts it to go back to the mainland’s life insurance coverage market which it quit five years ago.
“We have aspirations to grow in mainland China, which is a huge market with substantial service opportunities,” Jack Howell, president for Asia-Pacific at Zurich Insurance coverage, told the South China Early Morning Post in an unique interview.The insurer previously had a 20 percent stake in New China Life Insurance, which it sold in 2013. It presently runs a wholly owned basic insurer, Zurich General Insurance Provider(China), which uses home, business and other industrial risk insurance.In November, China revealed that it would relax the 50 per cent cap
on foreign ownership in life insurance coverage joint ventures so that overseas financiers could own a majority 51 per cent stake in three years ‘time, with the cap totally removed 2 years later on.” We are extremely motivated by the advancement in China. It is a terrific signal by the Chinese government in
terms of their willingness to have foreign players handle a more active function in the market,”Howell said.Even though the relaxation would enable foreign insurance providers to have actually a wholly owned life insurance coverage business in China, Howell said he would still choose to have a regional partner.”As a foreign insurance company, we have the global insurance proficiency, we comprehend technically how products work. As a foreign insurance provider, we require a partner in China who can truly assist us understand the China market and the Chinese customers.” The partner can likewise help us with distribution in China, so our company believe that the finest method to have a lasting presence in China is to have a strong partner and to interact and match each other.”He did not provide a timeline on when Zurich would establish such a joint endeavor, but said that finding the ideal strategic partner would be the secret to go on with such an expansion plan.As a foreign insurance provider, we require a partner in China who can actually assist us comprehend the China market and the Chinese customers Jack Howell, CEO for Asia-Pacific at Zurich Insurance Coverage In Hong Kong, the company had actually dismissed its direct sales channel of 700 sales agents in 2013 and moved to selling products through
independent monetary advisors and online channels.Zurich Insurance coverage is the 4th biggest general insurer in the city selling life insurance products in addition to cover for motor, residential or commercial property, medical, domestic helpers and travel.Besides Hong Kong and China, the company’s Asia-Pacific operations consist of Malaysia, Singapore, Australia, New Zealand, and Japan.Howell said the area was a significant engine of development in circulation and service
capabilities, and has actually acquired a number of companies in the region.In December, Zurich Insurance coverage announced the acquisition of Australia and New Zealand Banking Group’s life insurance arm for US$ 2.14 billion. In April, it obtained Australia’s largest travel insurer, Cover-More, for US$ 565 million.