With a booming Chinese economy, more and more fmailues are growing their wealth and in turn increasing the number of middle class citizens in China. With an increase in middle class fmailes, you start to see an increase in the number of cars on the road. What is interesting is drivers training in China is far different then it is in the US. Most drivers in China, young and old, have only been on the road for the last five years. So you have an entire country of rookie drivers on the road. Because of this, you see an increase of driving accidents and insurance claims. It was just a matter of time before the largest auto insurers took notice. Now all of the major insurance players are going after the Chinease auto insurance market.
The Chinease auto insurance marketing is expected to be worth roughly $50 billion dollars. Because of this, it is no surprise that AIG and Allianz are expanding their operations in the Asian market. They are trying to get a head start against the major insurers that will be entering the market at some point in the future.
The issue with non-Chinese insurers operating in region is there are many different rules and requirements that insurance companies must ad hear to. The main problem is the Chinese regulators have not yet detailed what exactly the new requirements are going to be. So in the meantime insurance companies must continue to do their due diligence on the Asian market and prepare their plan of attack.
The Asian insurance market is going to get very interesting in the coming future and it looks like this marketing is not going to be slowing down any time soon.