AIA China in Personnel Reshuffle

Chen Rongsheng, former president of AIA China, has left his position and he has been replaced by Cai Qiang, the CEO of AXA in Hong Kong.

Chen became the president of AIA China in June 2008. During the one year's time, Chen has strengthened the guarantee for insurance salespersons; enrolled more talented people; and enhanced the corporate image. However, (AIA China) until now cannot integrate the domestic branches, thus it cannot become an independent company, especially after its parent company AIG was strongly stung by the global financial crisis.

Based in Shanghai, the financial capital of China's Mainland, the company aims to become a top life insurer in China's Mainland in the future. It has brought forth six strategies, to improve the service quality, to train more local talents, to expand the number of salespersons, to explore more sales channels, to raise the premium revenues and to enhance the operating efficiency, as well.

Since the start of 2009, AIA China began focusing on participating insurance. Such products have been launched through both the salespersons and the bancassurance channel. Compared with investment-linked insurance, the participating insurance would secure consumers' investment under current unstable capital market. Of course, AIA China would diversify the variety of its products by adding such insurances as accident insurance, dread disease insurance, injury insurance and so forth.

As for the sales channels, AIA China currently mainly relies on salespersons. AIA China would still rely on qualified salespersons in China's Mainland in the coming 20 years. The company has decided to add 15% more salespersons every year.

Also, bancassurance is another important channel for the foreign life insurance company. It so far has established partnership with Industrial and Commercial Bank of China (ICBC, 601398.SH, 1398.HK), China Construction Bank (601939.SH, 0939.HK) and Bank of China (3988.HK, 601988.SH). All are large state-owned commercial banks in China. This year, AIA China expects to find more strategic bank partners, as it is in need of more professional salespersons and wealth management experts to promote the bancassurance business.

For the moment, AIA China is busy preparing for the establishment of its own backup center. Relevant plan is expected to come out in six months as to whether to build only one such center or construct two in North and South China.

Source: http://www.tradingmarkets.com/.site/news/Stock%20News/2431422/

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