Navigating the insurance maze

By Zhang Haizhou in Hong Kong (China Daily) Updated: 2014-11-14 14:22

Q&A | Mark Tucker

Could you discuss how AIA has been doing in China?

We are extremely proud of the fact that we were the first non-mainland financial institution to be granted an insurance license in the Chinese mainland in 1992 and the first insurer to introduce the agency distribution system in China over 20 years ago.

I think our business in China should become our biggest over time.

What do you think are the future opportunities for your company in China?

We still see the Chinese economy growing strongly, slightly below 7.5 percent this year. More than 300 million households in China are expected to have $10,000 in disposable income in 2015, an important transition point for developing economies when it comes to asset protection. The savings rate in China is high at 50 percent of GDP and only about 30 percent of companies provide employer-sponsored retirement plans. Collectively, this will generate huge demand for protection, especially protection for their family, children and retirement.

What are your views on China's slowdown?

I think the process of moving from quantitative to qualitative growth is the right process for China's development. The reform process is clearly in motion, and we are confident of the medium-to long-term success of the China story.

How do you rate the country's current investment environment?

The investment environment in insurance has been opening up with the ability to invest in more asset classes.

Could you tell us about the board meeting in Shanghai?

AIA was listed four years ago. This is the first time the board of directors meets in Shanghai. We had meetings in Malaysia, Thailand and Hong Kong. We have a very experienced board who know China well.