China’s insurance market is one of the most dynamic and changing insurance markets in the world. Hand in hand with that new opportunity and flexibility come changing rules and regulations that should be considered when looking to enter the China market.
Changing Laws and Regulations in China
Bear in mind when looking to enter the Chinese market that, along with the huge growth China is experiencing, there is a vast and ever-changing legal and regulatory structure that must be considered. It is important to keep a vigilant watch over those regulatory changes. Keeping yourself and your partners/staff informed as the market legal landscape continues to grow and become more complicated is crucial for ultimately providing your clients with the best and most current advice and information.
China’s Insurance Market is Very Competitive
The competitive nature of China’s insurance market currently provides opportunity to use the market to your advantage. Use this capacity to meet and exceed your business goals and objectives by understanding and utilizing the competitive market. Finding your place in the competitive field and using that place to achieve your business success will help provide a competitive advantage.
China and Central Asia’s Labor Market is no Longer “Cheap Labor”
China and Central Asia’s labor market costs are increasing. Due to more robust labor law and worker/consumer protections, the days of “cheap labor” that China and Central Asia have been known for in the past are not realistic considerations in today’s business climate.
You need to consider proper insurance coverage for staff regarding liability and make sure that the coverage is sufficiently transferable with regard to labor costs and staffing.
Engage Senior Levels of Management
Finally, if you have decided to transfer risk through these emerging markets it is imperative to engage senior levels of management and partners and their counterparts in the insurance company to make sure your coverage is both understood and balanced.
Because China’s market is a sales-driven culture, sales associates may sometimes not understand the nuances of the coverage they are selling. It is up to senior management and partners to engage the underwriting and sales people in the process and really make certain there is understanding across the various stakeholders when it comes to the products offered and how claims may be affected and settled properly.
I recently spoke with WillisTV about these and other issues for consideration when entering the Chinese market.
Guest blogger Wise Xu is Deputy CEO of Willis China