South African financial service group taps in
( 2002-10-10 10:00 ) (1 )

Alexander Forbes Ltd, a South African-based financial service group, is moving ahead with a bold effort to enhance its prospects in China.

Its plan to set up a joint venture insurance brokerage firm in the country is the first attempt to tap China's budding insurance market, according to John Percy-Davis, deputy chief executive of the company, who will chair the company's board meeting today.

High-profile figures from its headquarters and the Asia-Pacific region will attend the meeting.

The regional gathering, the first of its kind held in China, will create decisive strategies for its business operation in the region in a bid to speed up its penetration into the insurance market, particularly China's.

"We have already talked with senior officials from Beijing-based Chinese counterparts Jiangtai Insurance Brokerage Co and there will be more talks to select proper partners," said Percy-Davis, adding that the Chinese partners are supposed to have a strong knowledge of the local insurance market to better transfer Forbes' expertise into the developing sector.

"China's market is an exciting market and we believe that there will be tremendous growth opportunities for us," Percy-Davis said on Wednesday in an interview with China Daily.

The joint venture is expected to debut within two years, he said.

Percy-Davis said after the debut, more financial products and services will be offered to the Chinese market, such as retirement fund administration, employee benefit consulting and personal financial planning.

He said any plans will be considered with the group's partners.

The sole Africa-based insurance company with a presence in China, Forbes set up a representative office in Beijing in 1996, an initial prerequisite for development of a full business within the country.

"Clients will become much more willing to receive professional brokerage services when the products become complicated and there will be a growing demand for brokerage businesses, although people currently prefer traditional direct services," Percy-Davis said.

He is also due to meet government department representatives, insurance companies and researchers today.

Meanwhile, the group wants to take over Chinese financial companies in a move to speed up its entry into the local market, which is regarded by many international companies as a shortcut into a market with great potential.

"We are very interested in a plan for stake takeovers in the future," said Percy-Davis.