UK insurer will expand its reach

(Xinhua)
Updated: 2009-10-05 07:00

China's insurance market has huge potential for foreign insurers looking to expand in a rapidly growing economy, said Gerry Grimstone, chairman of Standard Life, the largest savings and pension company in Britain.

"China is a very exciting market. I am a great enthusiast for China and a great supporter of China," he said in a recent interview with Xinhua News Agency.

"I love the fact that we are part of the growth in China and try and sell products which are good for Chinese families," Grimstone said.

Standard Life operates offices in nearly 50 cities in China and is one of the top five international companies in the market. The joint venture between Standard Life and Tianjin Taida is the largest of its kind in China.

"China will become an important part of our business, so I encourage my people to take an interest in China," he said.

"I would like to have more of our people working in China," Grimstone said.

Speaking of China's efforts to boost its economy under challenging economic conditions, he praised the Chinese government's quick reaction to the global financial crisis, saying its policies have benefited other countries.

Grimstone said China should welcome competition from international companies since it has strong and effective regulations.

At present, the total market share for international insurance companies in China is about 5 percent, which is "very low", Grimstone said. But he also expressed his understanding of China's moderate pace of opening up the capital market.

Grimstone said all governments and financial services are cautious about the speed at which foreign companies enter their market.

"The good thing about China is that the Chinese domestic insurance companies are also very strong," he said.

"So we have good competition with them, and we enjoy competing with them. It gives the customer good choices,' Grimstone said.

Asked about his development strategy in China, Grimstone said that he would open more offices in China and recruit more staff.

"We have an ambition to have offices in about 100 cities in the next three or four years," he said.

Grimstone said relatively few people in China have insurance. "I am sure that the percentage will grow in the future," he said. Grimstone also said he welcomed the overseas expansion of Chinese companies. "That's what world trade is all about," he said.