The majority of foreign insurers in China are experiencing high staff turnover and that is likely to continue over the next three years, an industry survey revealed yesterday.
About 68 percent of respondents said their turnover rates ranged from 10 to 24 percent and were expected to persist until 2011, PricewaterhouseCoopers said.
The company interviewed chief executive officers and senior executives at 28 of the country's 40-plus foreign insurance companies in China's mainland.
Recruitment was one of the most pressing challenges they faced as they prepared for expansion in China, the report found.
"A significant number of participants highlighted the human resources issue. They find it difficult to hire across the board, particularly at the senior executive, actuarial personnel, branch and middle management levels," said Peter Whalley, a PricewaterhouseCoopers assurance partner.
Upbeat
The survey also identified a pronounced skills shortage in sales and marketing.
Despite the challenges, most of overseas insurers were upbeat about their prospects in China's mainland.
Over half of respondents expect the group will grow to 50 or 70 by 2011 with a modest growth in premiums also in the pipeline.
Forming alliances with Chinese partners including banks continues to be the major strategy in the coming five years, the survey found.
Strong movement toward bancassurance, telemarketing and sales distributors is expected.
Bancassurance grew rapidly this year as insurers added to their distribution capability by teaming up with Chinese banks.
Most of the insurance products sold at banks are savings type, not protection ones.
PricewaterhouseCoopers partner Tom Ling said there may be concerns about insurers' bottom lines as those deposit-type products were relatively low in profitability compared with protection ones.
"Top line and bottom line are both important for insurers in expansion," he said.
Insurers who took part in the survey included American International Assurance, Allianz China Life Insurance and United MetLife Insurance.
