China's insurance market has 'tremendous opportunities' lie ahead, forum heard

The Allianz China Growth Forum, held in Shanghai on Monday, brought together economists and financial experts from China and Germany, to discuss the future of insurance and asset management amid China's new pattern of economic development.

"We're meeting here today at a time of elevated uncertainties." said Oliver Baete, chairman of the board of management and CEO of Allianz SE, mentioning the much tougher geopolitical environment, higher inflation and more pressure from digitalization.

Despite the challenges, Baete expressed his optimism about the Chinese insurance market, emphasizing the tremendous opportunities that lie ahead and reaffirmed Allianz's commitment to providing better services to Chinese customers.

"In the intersection of insurance and wealth management, there's a lot of room for innovation that we can all catch up. So opportunities and challenges are around," Baete said.

"We are looking forward to collaborating with you and working with you for many, many decades to come."

Renate Wagner, member of the board of management of Allianz SE, highlighted the strategic significance of Asia, particularly China, for Allianz's growth. She stressed the importance of continuous participation, feedback, and opinions from partners and customers to ensure sustainable growth in China.

The forum focused on the current global economic and financial landscape and welcomed industry experts to share their insights.

Ludovic Subran, chief economist of Allianz SE, shared valuable findings from their 2023 global economic and global wealth report, highlighting China's effective control over inflation and the population's forward-thinking considerations for retirement and wealth planning.

Guo Lei, chief economist of GF Securities, discussed China's macroeconomic situation and capital market trends, emphasizing the potential of equity assets in achieving sustainable growth.

"China's economy is gradually overcoming the phase of the greatest short-term pressure, with exports, real estate, and debt-for-equity swaps driving nominal growth at the moment. In the long run, the annual compound return of equity assets may be comparable to the nominal GDP growth rate," Guo believed.

Liu Xinqi, chief analyst of Guotai Junan Securities, presented research on insurance asset-liability matching in the new normal, stressing the need to address challenges such as the contradiction between insurance assets and liabilities and adapting business models to meet customer demands. While Zhang Shuaishuai, chief banking analyst at the China International Capital Corporation, focused on pain points in China's wealth management market and suggested alternative solutions to enhance investor returns.

The forum marked the first comprehensive appearance of Allianz's business entities in China. It also featured roundtable forums that delved deeper into corporate ESG strategies and personal wealth management. The discussions aimed to better understand sustainable development for Chinese enterprises amidst the complex international environment and identify key drivers for personal wealth appreciation.