FOREIGN INSURANCE companies believe in strong growth and increased market shares in the Chinese market. At the beginning of 2011 there will be a yearly growth of 50 percent and companies believe in a 10 percent
market share. The growing Chinese middle class is becoming aware of the need for insurances, both in savings and ventures.
– Most life insurance companies estimate a yearly growth by 30-50 percent while property insurance companies estimate growth by 20-40 percent in 2008-2011, says Karin Hjalmers, responsible for insurance at Öhrlings Pricewaterhouse Coopers.
FOREIGN INSURANCE COMPANIES are concerned about the domestic and international economic situation, the unstable Chinese stock market and a Chinese currency increase. Finding the right personnel is also a big challenge for expanding foreign insurance companies.
– A major part of participants in this survey emphasise the personnel issue. They experience general problems with personnel supply, especially in corporate management and middle management. Staff turnover is high. 68 percent of participants in the survey reported a staff turnover of 10-24 percent in 2008. Problems are expected to continue until 2011, concludes Karin Hjalmers.
ALLIANCES WITH LOCAL ACTORS will become more frequent in the future.
– Many companies consider alliances with banks and other financial institutions. In five years, we believe an important part of the overall strategy will be forming alliances with Chinese companies, says Karin Hjalmers.
Martin Askman
Marketing & Communications
Öhrlings PricewaterhouseCoopers