Chinese market tough for AIG
Insurance giant AIG says it will expand its general insurance business deeper into China in the next five years in a move the company concedes is “challenging”.
Speaking at an insurance conference in New York, AIG Foreign General Insurance Executive Vice President Nicholas Walsh said “endemic non-insurance” is one of the biggest challenges facing insurers in the Chinese market.
“As far as the Chinese consumer is concerned, they don’t buy insurance, and that’s a big thing to get over,” he said.
Mr Walsh says the Szechuan earthquake in May, which killed 60,000 people and flattened population centres, failed to provide much of a wake-up call. But he remains optimistic about potential growth in China, citing accident and health, export liability and marine insurance as good prospects.
He admits AIG has struggled to expand its footprint in China, describing the licensing process in particular as “frustrating”.
AIG expects to begin operating in Beijing from next year.
Speaking at an insurance conference in New York, AIG Foreign General Insurance Executive Vice President Nicholas Walsh said “endemic non-insurance” is one of the biggest challenges facing insurers in the Chinese market.
“As far as the Chinese consumer is concerned, they don’t buy insurance, and that’s a big thing to get over,” he said.
Mr Walsh says the Szechuan earthquake in May, which killed 60,000 people and flattened population centres, failed to provide much of a wake-up call. But he remains optimistic about potential growth in China, citing accident and health, export liability and marine insurance as good prospects.
He admits AIG has struggled to expand its footprint in China, describing the licensing process in particular as “frustrating”.
AIG expects to begin operating in Beijing from next year.