The second spot was
held by Japan, though China is bound to see a 10% hike in the next 5-10 years.
Senior partner at
McKinsey - Stephen Binder, co writer of a book, said, "China's rising middle class, of which there are
expected to be 500 million by 2025, has been gradually shifting financial assets
from low-paying deposits into higher-yielding investments, creating new
opportunities for the insurance sector."
mentioned, "By 2015, the middle-class group in both first-tier and
second or third-tier cities will represent 30 percent of the urban population,
contributing more than 30 percent to the growth of the life insurance
class families - especially new parents were majority of the clients - they
contributed to 30% of the growth. Parents were buying education, investment and
life insurance for their 2 year old child.
Future insurance companies
would need to work with banks to sell their products. Binder also felt "To
succeed in China, foreign insurance firms need to follow a clear and consistent
strategy that avoids the tendency to sacrifice long-term health for short-term
performance." Foreign companies needed to study the people and understand
them and they could offer them personalized products to succeed in the