Aviva focuses on digital strategy for expansion

Aviva-COFCO Life Insurance Co Ltd, a joint venture between the largest British life insurer Aviva Plc and China's State-owned agricultural giant COFCO Corp, aims to be a leading multi-distribution and digital focused insurer in China, providing tailored products and services to the country's rising middle-income and affluent customers, a senior executive of Aviva said.

"China is one of our focuses in Asia, where we have strong businesses, competitive advantage and can achieve scale," said Chris Wei, executive chairman of Aviva Asia and global chairman of Aviva Digital.

Aviva-COFCO recorded value of new business of 23 million pounds ($35 million) in the first half of this year, according to Wei.

While growth continues to be generated through existing distribution channels, digital strategy has become a key focus of Aviva to seek further business expansion in China.

"We are investing heavily in the development of our digital strategy, and are ahead of the curve in digital development," Wei said.

Wei cited the recently launched digital Health and Wellness Platform as an example that illustrates the insurer's vision that goes beyond simple online sales.

The online platform, created by Aviva-COFCO in June, serves as a one-stop-shop for increasingly health conscious Chinese consumers with a growing demand for medical and wellness advice and protection.

Aviva-COFCO achieved 20 partnership agreements on the platform as it attempts to tap into rising Chinese consumer willingness to use digital and remote contact channels to interact with their insurers.

Despite the slowing Chinese economy, Wei said that Aviva focuses on its long-term strategy in China, which has great potential for foreign insurers.

China has aimed to achieve an insurance penetration target of 5 percent of its GDP by 2020, up from 3.3 percent in 2013.

The country's insurance spending per capita is forecast to rise to 3,500 yuan ($550) in 2020, from approximately 1,300 yuan in 2013, according to a report by accounting firm Ernst & Young.

While admitting that local Chinese players still dominate the marketplace, Wei said insurance is an area where foreign and niche players can bring best international practices to China.

"The Chinese insurance market is growing and evolving fast in light of digital evolution and wealth demographics with an expanding middle class looking for quality insurance cover of international standards," he said.

"Aviva-COFCO targets middle income and affluent customers in China with tailored products and services through an engaging customer experience, which would help Aviva differentiate itself from its competitors," Wei added.

Operating in 54 cities in 12 provinces, the insurer posted a total premium income of 3.79 billion yuan last year, according to its financial statement.

Wei said Aviva would continue to rely on its Chinese joint venture to expand its current offering in China.

"The JV combines Aviva's insurance expertise and COFCO's local market know how, brand and distribution," he said.

lixiang@chinadaily.com.cn

(China Daily 10/22/2015 page19)