CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 03, 2019 12:24 PM (EST)
In this episode of AM BestTV, Sam Radwan, president and chief executive officer, Enhance International, said recent moves by China’s insurance regulator are stirring cautious interest by foreign firms looking to increase their footprint in the growing market there. Click on http://www.ambest.com/v.asp?v=radwan119 to view the entire program.
Radwan addressed how the easing of shareholder restrictions on foreign investments by China’s insurance regulator has impacted the country.
“I think foreign players are going to approach the China market cautiously,” said Radwan. “There are lessons that have been learned from some of the players who entered the China market early; for example, the China market is a very difficult market to penetrate and to make a profit in. I believe the fact that there is an easing is not necessarily going to produce a lot of players knocking at the door to enter the China market.”
Radwan also spoke about the merger and acquisition risks foreign investors face in China.
“In my view, the biggest challenge in China is twofold. First is distribution. Gaining access to such a vast market is a difficult endeavor. Foreign players cannot do it on their own. They need to rely on a good Chinese partner in order to be able to access distribution efficiently. Second is the lack of focus on profit and the willingness of some of the larger players to sacrifice profit for market share; consequently, making it difficult for foreign players to build a model that is profitable given the fierce competition in that space.”
However, Radwan said foreign market participants have an opportunity for investment and growth in China’s commercial property/casualty sector.
Recent episodes of AM BestTV include:
AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View AM BestTV episodes at http://www.ambest.tv .
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.