2020 Update: Foreigners Can Now Start Insurance & Wealth Management Companies in China

2020 will mark a new wave of wholly foreign-owned insurance companies in China which has always been a foreigner-restricted industry.

Some of the top companies in China offer insurance services and this sector has always been domestically owned – foreign entities were never allowed to take part in the industry.

Read More: 10 Things to Know Before Coming to China for Business

However, we’ve seen drastic changes in foreign investment in the country over the past couple of years. China is opening up to the world and foreigners are entering more and more business sectors.

Meet China’s First Foreign Insurance Companies

While the new policy was still getting implemented, AIA Group’s sub-division has been looking to start office since the beginning of 2020. The group is set to become the first foreign-owned life insurance company in China.

Moreover, Allianz (China) Insurance Holding Co., is the first foreign-owned insurance holding company in the country. There are also other previously restricted segments such as asset and wealth management that are also getting foreign entrants.

China Merchants Cigna Asset Management Co. was recently approved by the government for its incorporation and it will become the fourth foreign-funded asset management company in China. Recent developments this year in the business landscape of China are a good indication of what to expect in 2020.

China’s Opening Up

We foresee foreign entry into not just the insurance sector, but also other industries that were previously restricted by the government. This is good news, China is likely to soon implement further policies to benefit foreign businesses in its jurisdiction.

Analysts believe that in 2020, the insurance industry will receive significant investment from foreign entities. What’s more, is that the investment figures will keep going up and the industry will continue to receive more entrants. The performance of the market is worth looking forward to and at the same time, the impact of its opening-up will take great attention from insurance giants worldwide.

If you have any questions about insurance companies or related company formation in China, feel free to contact us here.

Via Sina.com