China has long been identified as a strategic market for Standard Life Aberdeen. Its latest approval is the next step to increase the footprint.
Heng An Standard Life (HASL), a joint venture between Standard Life Aberdeen and Tianjin TEDA International, has been granted permission to establish a pensions insurance company in China, the firms announced on Thursday.
The approval to move forward with the development of a pensions business for HASL reflects the strength of the proposition and the relationships the company has built in the region. It is only the ninth insurance company, and the first joint venture business, to have received this approval.
Significant Opportunity
HASL was been formed in 2003 and offers a comprehensive suite of health, life and savings products in China. For a number of years the firm has had ambitions to offer pensions products in China, reflecting the potential offered by China’s rapidly developing pensions market.
China represents a significant opportunity for both insurers and investment managers, HASL writes. It has an ageing demographic, with over 250 million people expected to be over 60 by 2020, with a smaller working age population to support them.
Individual Savings
As a result, the Chinese long-term savings system is expected to shift from a predominantly state-provided pension to one with a focus on occupational and individual savings.
Long-term policy reform – including the development of tax-incentivised savings – is underway to support this transition.
