HSBC Life Insurance Company Limited, which is a joint venture set up by HSBC and Beijing based National Trust, opened up business in Shanghai making global financial giant enter into market with the world’s fastest growing life insurance markets.
This joint venture headquartered in Shanghai has a capital worth 500 million Yuan. The HSBC and National Trust hold a 50 percent stake in all. The company would focus on China’s population with an increase in growing discount which would offer life, pension and medical products.
China is the focus of HSBC’s strategy in emerging markets. If HSBC has no insurance business overseas in China then they would not be called as world’s largest insurance companies and China’s largest foreign bank.
The total life insurance premiums of China amounted to 733.8 billion this year, with a 48% increase in the previous year which is second in scale in Asia after Japan. This insurance penetration is a percentage of economy which is as low as 3.3 percent. The China’s large population with a low penetration and ongoing economic reforms play an important role that Chinese market would play in for HSBC insurance global expansion.
As a result of this HSBC enters into life insurance market of China with a holding of 16.78 percent for Ping Insurance Co, which is country’s second largest life insurer.
China is the focus of HSBC’s strategy in emerging markets. If HSBC has no insurance business overseas in China then they would not be called as world’s largest insurance companies and China’s largest foreign bank.
The total life insurance premiums of China amounted to 733.8 billion this year, with a 48% increase in the previous year which is second in scale in Asia after Japan. This insurance penetration is a percentage of economy which is as low as 3.3 percent. The China’s large population with a low penetration and ongoing economic reforms play an important role that Chinese market would play in for HSBC insurance global expansion.
As a result of this HSBC enters into life insurance market of China with a holding of 16.78 percent for Ping Insurance Co, which is country’s second largest life insurer.
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