China market opportunities for foreign insurance companies under the new opening-up policies

As China accelerates the opening-up of its financial sector, the insurance market has witnessed changes in its competitive dynamics since 2019. These changes are only set to continue into the near future.

Through an analysis of the new opening-up measures, this report summarizes opportunities and challenges for foreign insurance companies' market development in China. It also discusses possible paths for foreign insurers to enter (or re-enter) China market. In doing so, this report looks to answer the following questions:

1. Is buying out their Chinese JV partners an option for existing foreign insurers?
2. What key challenges and regulatory requirements should foreign insurers consider if they want to set up a WFOE in China?
3. Is M&A a viable expansion route for foreign insurers? What type of companies could be an ideal acquisition target?
4. How can foreign insurers benefit from partnership with Chinese InsurTech companies?

The trends explored in this white paper suggest that the next three to five years will be the critical period for foreign insurers to develop their foothold in the Chinese market. Indeed, the impact of the COVID-19 may make these opportunities easier to materialize.