The country aims to bridge the gap between international competing firms and local
Here’s how China’s domestic players to benefit from foreign insurers. Source: shutterstock.com
According to GlobalData, China is set to become the largest global insurance market, thus attracting foreign insurers to invest in the country. However, despite opening up its economy, domestic champions are set to benefit from any foreign competition.
An analysis of GlobalData’s Global Insurance Database found that China’s GWP, which stood at $195.65 billion in 2020, is expected to reach $259.97 billion in 2024.
Reportedly, Allianz Group is now set to become one of the first foreign insurers to run a fully owned operation in China under Allianz (China) Insurance Holding Co.
The company has been pursuing 100% ownership of the insurance entity since December 2019, when the Chinese Banking and Insurance Regulator lifted a 51% cap on foreign insurers ownership in Chinese operating insurers.
The analyst highlights that China is expecting that foreign insurers will push domestic insurers to learn from global best practices, fostering better corporate governance, risk pricing, and investment management.
We’ve reported that the demand for cyber insurance has the potential to be greater than ever.
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