Prudential increases presence in China
BRITISH-BASED Prudential Corp is stepping up its presence in China as it prepares to take full advantage of the mainland's expanding life insurance market.
Two more representative offices were opened this week in Shanghai and Guangzhou. Prudential also has an office in Beijing.
Prudential is the largest listed insurance company in the world and has US$12 billion in investments in Asia.
The firm invested heavily in two financial colleges in China which train insurance employees.
Prudential's chief executive, Mick Newmarch, said after his three-day visit to Shanghai: 'Quite clearly the prospects for the life insurance market in China are potentially enormous.
'We know we have to be patient before we can be given a licence to operate, but we have a very good relationship with the People's Bank of China (PBOC) and also with the mayors in the municipality of Shanghai.' Prudential aims to get a prominent foothold in the insurance market before competition opens up.
Prudential had discussed plans to cultivate relationships with insurance regulators through exchange and training programmes between the PBOC and its offices in Hong Kong and Singapore.
Mr Newmarch emphasised that regulations and laws were needed to protect the interests of policy-holders and to create a healthy environment for the insurance industry.
He also said authorities needed to be persuaded that long-term investment would benefit China's fluctuating economy.
