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Following the opening of a new branch office in South Korea in June, Allianz Global Corporate & Specialty SE (AGCS) is targeting further growth in Asia by expanding its presence in China and Indonesia. AGCS has commenced operations in Beijing, China, as a division of Allianz China’s new office in the country’s capital.
By expanding its network AGCS aims to capitalize on opportunities from the growing insurance markets in China and Indonesia. China is the world’s second-largest insurance market, and in 2016, accounted for close to half of global insurance growth.
In Indonesia, regulators have indicated that positive economic developments such as an acceleration of the country’s GDP to 5.3% by year-end 2017, would boost Indonesia's insurance premium growth with growing demand in property and engineering insurance following a larger government budget for infrastructure.
Carsten Scheffel, AGCS Board Member and Chief Regions and Markets Officer for Asia said: “The Asian market is of utmost importance to AGCS, and in 2016 contributed 5% to our overall global premium volume of EUR 7.6 billion. We see a number of significant opportunities in Asia, with the increasing number of large infrastructure projects in railways, ports, subway lines, and a growing focus on environment liability.”
One Belt One Road: A unique opportunity for insurers
In China, Engineering, Entertainment and Environmental Impairment Liability (EIL) solutions offer the most promising opportunities in the corporate insurance segment. In the Engineering segment, AGCS seeks to capitalize on opportunities arising from the One Belt One Road (OBOR) Initiative.
It is predicted that over USD 8 trillion will be invested in infrastructure projects across 65 countries which will drive demand for large-capacity construction and engineering insurance solutions. According to industry estimates, insurance premium potential from OBOR infrastructure construction projects to date is about USD 7 billion.