China to make up increasingly large share of Aon’s global business
More opportunities await insurance joint ventures, a general manager said
Aon will increase its support of its first-ever Chinese joint venture (JV) insurance brokerage in the country to continue seizing opportunities, according to Aon-COFCO Insurance Brokers general manager Dia Jia.
Jia said that the Asian behemoth will power an increasingly large share of the global broker’s international business. While he admits that Aon-COFCO contributes little profit and revenue, the large space to grow in means that offshore companies have faith in the Chinese market.
In a report from Yicai Global, Jia said that the past two years has further opened China’s financial industry, resulting in better opportunities for insurance JVs like Aon-COFCO. However, he noted that a serious and meticulous study is needed to decide on future inputs.
Aon-COFCO started out in 2003 as a joint venture between global brokerage Aon and China National Cereals, Oil & Foodstuffs Corporation (COFCO), a large conglomerate in China. Further business explorations for growth began in 2015, and the broker now has eight industries of focus, including agriculture, high tech, automotive, chemicals, life sciences, and new energy.
Jia also urged brokers to discard their conventional product-centric thinking and instead focus on solutions to alleviate various types of risks. Foreign insurers can also draw from their global experiences and data for specialized segmentation to drive higher values for their organizations.
Recently, two McKinsey partners also shared their views on breaking through the Chinese life insurance market as well as their advice for MNCs looking to make the best once they get through.
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