An American International Group Inc. unit has received approval to provide
group insurance throughout China, as the world's largest insurer makes a push to
boost its business in the world's most populous nation, the company said Friday.
Earlier this month AIG said it received approval to sell life insurance in
two of China's top three provinces in terms of economic activity. It will also
sell property insurance in one of them.
AIG, which has roots in China from contacts by former AIG Chairman and Chief
Executive Maurice "Hank" Greenberg, is the only foreign insurer in China that
does not have a domestic partner.
On Friday, AIG said the China Insurance Regulatory Commission authorized
AIG's American International Assurance Co. to issue group contracts covering
life insurance, personal accident and health insurance, and other products. The
contracts can apply to groups of five or more people.
"China is facing the heat of globalization and needs to modernize its
financial structure," said Donald Straszheim, vice chairman of Roth Capital
Partners, who is currently trying to interest investors in China. "This can only
be done by bringing in talent and expertise from outside."
Other insurers, many of them European, have already established offices in
China, often in partnership with Chinese companies.
Swiss Re, the world's second largest reinsurer, has a 60-person branch in
Beijing, where it sells both life and other insurance products.
Swiss Re's chief economist for Asia, Clarence Wong, projects the Chinese
property and casualty insurance market will grow by about 9 percent in the next
10 years, while life insurance growth will be more than 14 percent.
MetLife Inc., the United States' largest life insurance company, launched a
Chinese joint venture earlier this month with Shanghai Alliance Investment Ltd.
Also in May, Zurich Financial Services Group AG said it was granted a
business license to establish a general insurance office in Beijing that will
focus on corporate customers.
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