ASIA: Rise in middle-class prosperity drives growth in the Chinese insurance market
Growth in the Chinese insurance market will be driven by the growth in the middle-class - those who are sufficiently prosperous to take a long-term view of their own financial security.
Although the insurance industry is by definition about risk, this inherent risk is exacerbated when entering developing markets with huge potential such as China. Specific issues are the difficulty in recruiting experienced local staff, the sheer size of the country which creates problems in providing national coverage, the regulatory and corporate governance environment and low interest rates leading to paltry returns on fixed-income investments
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