“People like us who buy Ferraris don’t care too much about insurance because we buy cars for speeding,” said Li, in his twenties and the son of a Pearl River Delta factory owner, as he took delivery of a new 5 million yuan ($787,500) 458 Spider, his fourth red Ferrari. “If we crash, we just throw them away.” Drivers like Li, who gave only his family name, illustrate the challenges that big global insurers such as Allianz , AXA and Chartis face as they move further into China under new rules allowing foreign firms to offer a full range of insurance products in the world’s largest car market.
One of the main reasons foreign insurers’ market share is so small is the limits China imposes on their growth. Foreign insurers must apply to open new branches, and approval for each branch can take 12-18 months. Read more...
(Ref: Insurance Journal, June 5, 2012)
No comments:
Post a Comment