United insurance industry can unlock China potential, says expert Go back »

2008-07-16 | Southwest China

"Chengdu's insurance companies must work together to realize the industry's huge potential", Chengdu European Chamber board member and insurance expert Oliver Hickfang told a European Chamber seminar.

Mr. Hickfang, who is a senior manager for German insurance giant Allianz, said on average the Chinese invest only 8 percent of their assets in life insurance or pension funds compared to 64 percent in the United Kingdom.

"There is a vast market in China and we want to develop this as a whole group because we have more power than a single company," Mr. Hickfang told an audience of Chengdu insurance professionals.

He also said a strong insurance industry can boost China's development and ensure financial and social stability. He pointed to problems China faces, including the RMB 12 trillion needed to fund infrastructure programmes and the growing gap between rich and poor, and said insurance could help soothe them.

"Time and again, experience has shown the many benefits of life insurance in the developed world," he said. "China's life insurance industry could play a key role in tackling the country's economic and social challenges if government, media, schools and universities, companies and consumers help the industry to realize its vast potential."

He said it was the task of insurance companies to ease the government's burden of pensions and life insurance and make it the role of the private sector.

"The government should be there for the poorest," he said. "Employers and individuals should take care of the people who can afford insurance."

Mr. Hickfang made his comments at a seminar organised by the Chengdu chapter of the European Union Chamber of Commerce in China. After his speech, Mr. Hickfang chaired a roundtable discussion with attendees on issues affecting the sector.

The seminar and discussion was the first of many planned regular meetings for Chengdu's insurance industry.

To download the PDF file of Mr. Hickfang's presentation, please click here.