AM BestTV: China Opens New Chapter in Insurance Mergers and Acquisitions, Says Enhance President and CEO
OLDWICK, N.J.--(BUSINESS WIRE)--Jan 3, 2019--In this episode of AM BestTV, Sam Radwan, president and chief executive officer, Enhance International, said recent moves by China’s insurance regulator are stirring cautious interest by foreign firms looking to increase their footprint in the growing market there. Click on http://www.ambest.com/v.asp?v=radwan119 to view the entire program.
Radwan addressed how the easing of shareholder restrictions on foreign investments by China’s insurance regulator has impacted the country.
“I think foreign players are going to approach the China market cautiously,” said Radwan. “There are lessons that have been learned from some of the players who entered the China market early; for example, the China market is a very difficult market to penetrate and to make a profit in. I believe the fact that there is an easing is not necessarily going to produce a lot of players knocking at the door to enter the China market.”
Radwan also spoke about the merger and acquisition risks foreign investors face in China.
“In my view, the biggest challenge in China is twofold. First is distribution. Gaining access to such a vast market is a difficult endeavor. Foreign players cannot do it on their own. They need to rely on a good Chinese partner in order to be able to access distribution efficiently. Second is the lack of focus on profit and the willingness of some of the larger players to sacrifice profit for market share; consequently, making it difficult for foreign players to build a model that is profitable given the fierce competition in that space.”
However, Radwan said foreign market participants have an opportunity for investment and growth in China’s commercial property/casualty sector.
Recent episodes of AM BestTV include:Risk Meets Capital: Inside the Creation of a Reinsurance Company: Executives from Harrington Re, Blackstone Insurance Solutions and Axis examine the strategy and steps that led to the launch of Harrington Re: http://www.ambest.com/v.asp?v=harrington119. Regulatory Expansion Drives Cyber Market, Says AIR Assistant Vice President and Director: Scott Stransky, assistant vice president and director of emerging risk modeling, AIR Worldwide, said evolving cyber-risk models cannot predict the next breach, but are better at identifying environments in which cyber breaches are more likely: http://www.ambest.com/v.asp?v=stransky119. Beyond Selling: How Carriers Support Agents in a Data-Driven World: A panel of insurance and technology experts examine how carriers are using data and analytics to drive profitable production and create stronger relationships with their agents: http://www.ambest.com/v.asp?v=agentsdata818.
AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at. ViewAMBestTV episodes at.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visitfor more information.
Copyright © 2019 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190103005601/en/
CONTACT: Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
KEYWORD: UNITED STATES EUROPE ASIA PACIFIC NORTH AMERICA CHINA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 01/03/2019 12:53 PM/DISC: 01/03/2019 12:53 PM