AIA Group Limited has received approval from the National Financial Regulatory Administration (NFRA) Anhui Bureau to begin initial preparations for a new branch in Anhui province.
This strategic expansion represents AIA’s continued focus on increasing its presence within the Chinese insurance market, as demand for life and health insurance solutions grows.
Anhui province, located in Eastern China, reports a gross domestic product (GDP) of RMB4.7 trillion and a population exceeding 60 million, including an estimated 17 million middle-class residents.
As part of the Yangtze River Delta Economic Zone, Anhui’s economy is positioned for significant development under the region’s integration plans.
AIA noted that Hefei, the capital of Anhui, has attracted skilled talent to emerging industries such as green technology, new energy vehicles, and information technology, all of which have spurred greater interest in comprehensive insurance products to meet local needs.
“Mainland China remains one of the most attractive markets for life and health insurance in the world. AIA has significant headroom to grow within our existing footprint and in our new geographies,” said Lee Yuan Siong, AIA group chief executive and president.
He said the expansion into Anhui aligns with AIA China’s plans to establish a presence in six additional regions, reaching over 100 million potential customers in the area with a combined GDP of RMB28 trillion.
“Following the planned expansion into Anhui, AIA China will have added six new geographies since 2019, extending our reach by more than 100 million target customers in regions with a combined GDP of RMB28 trillion,” Siong said.
Siong further emphasised AIA’s focus on its Premier Agency model to provide comprehensive protection and savings products that address changing customer needs.
Fisher Zhang, CEO of AIA China, highlighted the approval’s significance.
“AIA China is delighted to receive regulatory approval to prepare our new branch in Anhui, a testament to the government’s recognition of our high-quality operating model and strong AIA brand,” he said.
He added that the company aims to contribute to Anhui’s insurance market by offering products and services that help families in the province live healthier, longer lives.
Pending final regulatory approvals, AIA China’s Anhui branch will begin operations. Currently, AIA’s footprint in Mainland China includes Beijing, Guangdong, Jiangsu, Shanghai, and Shenzhen, with recent expansions into Hebei, Henan, Hubei, Sichuan, and Tianjin.
In 2020, AIA China became the first wholly foreign-owned life insurance company in mainland China.
AIA announced the expansion as China’s life insurance sector is expected to expand at a compound annual growth rate (CAGR) of 9% from 2024 to 2028, with premiums projected to increase from CNY4.0 trillion (US$597.1 billion) in 2024 to CNY5.6 trillion (US$893.2 billion) by 2028, according to research by GlobalData.
This growth reflects several market factors, including economic recovery, regulatory changes, and increased consumer attention to health and financial planning in the wake of the COVID-19 pandemic, leading to greater demand for life and personal accident and health insurance.
