全文统一用times new roman字体，小四，1.5倍行距
文章中请不要用I，WE，OUR，YOU，YOUR之类的主观性强的1，2人称，可以用被动语态或其他句型代替
Allainz the biggest insurance wants to further expand its business, globally. Among all the countries India and China are two most attractive markets. Before deciding which market to involve in, a detailed market research is indispensable. This essay just gives a comprehensive study over the two markets. (第一个部分介绍essay的主要内容)
Firstly, this essay will make a general overview of the insurance industry globally, and the second part is the information of the Allianz Group. Subsequently it will makesome market analysis of Chinese insurance market. The analysis of Indian insurance market lies in the fourth part of the easy. Finally it will put forward some recommendation for the marketing selection and entering strategy for the Allianz group.（Introduction第二部分介绍这篇文章的结构，按照firstly, secondly,…finally的固定形式介绍文章结构，你只需列入body里面介绍的每一点）
（Introduction之后是main body，把文章分成几个小点讨论，每一点写个小标题，加粗）
The insurance industry is the industry dealing in risk and larger sum of money is indispensable for the business of this line. Insurers promise to compensate individuals and businesses for future losses, in exchange for a premium, thus taking on the risk of personal injury, death, and damage to property, unexpected financial disaster and just about any other misfortune. Insurance companies also purchase their own type of insurance, called reinsurance, which allows them to insure large risks and to spread the risk on smaller accounts. Insurance companies rely on investment income to make a profit, since premium alone is typically not adequate to pay claims.
In the past 10 years, the world actual GDP increased by 2.9%, averagely, keeping a stable increase. The GDP increased 3.4% and reached 44.4453 trillion dollars in 2005, globally. Simultaneously, the insurance industry developed rapidly and played a more and more important role in the world economy activities. The total revenue of insurance industry was only 1.406 trillion dollars, but it increased to 3.426 trillion dollars, with the annual increase rate of 5.72%.
The Allianz Group is one of the world's leading insurers and financial services providers. It was founded in Berlin, in 1890. Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of property and casualty insurance, life and health insurance, and asset management and banking. In fiscal year 2005, Allianz's total revenues amounted to some 100.9 billion Euros. At the end of 2005 Allianz Group had more than 1.26 trillion Euros in assets, under management. Of this, 743 billion Euros were assets managed for third parties.
China and Indian, as the two biggest developing countries in the world, hold great attraction to foreign companies. Large portion of the 500 biggest companies of the world now have invested in or are preparing to develop in the two countries. Both China and India have huge population, thus possess immense potential markets. Allianz who wants to seek for further development and keep its leadership in the insurance industry must extend its business to China and India. As a matter of fact the Allianz Group has already invested in China and India, but the total investment cannot justify the large market of the two countries, so the leaders of Allianz decide to further extend its business in the two countries. Nevertheless, for the two countries, which one shall be prior? Further investigation and analysis will reveal which country is more attractive to Allianz.
a. The cultural analysis of China
China is a nation with a glorious long history. During the splendid 5,000 thousand years, the Chinese nation has created the unprecedented culture. There are over 1.3 billion people and mandarin is the official and most widely used language. The Chinese nation is formed of 56 different nationalities and the Han nationality is the majority which has over 90% of the total population. China does not have state religion, but Buddhism is the most popular religion, next to that is the Dao religion (a religion originates in China). Some of the minorities believe in Muslin. In recent years, the education develops fast in China and the college students consist of a large part. Chinese have their special culture and it will influence the business dramatically. For example in China black represents death and red is the color of happiness. Eight is a lucky number for Chinese, while 4 is a disaster (Jin and Xiu, 2006)
b. The economic, political and legal analysis
Since Chinese government adopts the open up policy, Chinese economy boosts year by year and China is one of the countries that have the most rapid development speed. In the years between 1999 and 2004 the GDP increased by 10.8 on average. The economic environment improves a lot and the country gradually changed from government planned economy to market economy. With the population of over 1.3 billion people, China has the largest market. The fast economic growth promotes demand for production machines and consumption products. As the service line lags behind compared with the industry, there is great potential for service products.
Prior to 1979, foreign companies were not allowed to enter China. However, significant changes took place since then. Chinese government put forward a serial of policies to promote Chinese foreign trade and attract foreign investment. In 2002, the total value of import and export reached 620.79 billion US dollars and absorbs 52.74 billion US dollars. Chinese market opens step by step and it expedites its steps after joining the WTO. Before 2005 foreign companies are not allowed to handle in lots of lines, especially the service industry such as finance and insurance. Many lines have limited the shares that a foreign company can have. Nevertheless, China loosens these restrictions and many companies can operate separately.
c. Market audit and competitive market analysis.
China’s insurance market develops at a fast speed. The rapid growth of premium income stimulated the insurance asset to a rapid expansion. By the end of 2005, the total insurance asset had amounted to RMB 1522.594 billion, and the total insurance capital had exceeded RMB 100 billion. The insurance companies hold treasury bonds of RMB 358.83 billion, financial bonds of RMB 178.51 billion and corporate bonds of RMB 10.76 billion. There are 1.815 million staffs engaged in insurance, accounting for over 40% of the total number of staffs in financial enterprises in China. At present, only 4% of the 1.3 billion people have personal insurance. As more and more people will own their private cars and house property, the premium is destined to rise, so it will become more attractive.
Along with the rapid growth of economy, the insurance policies change fast, especially the market access which has improved greatly. In 1992 China began to allow limited access to foreign American International Group (AIG) is the first foreign insurer to conduct insurance business in China. Following it Tokyo Marine and Fire Insurance and Winterthur Swiss Insurance entered in 1994 and 1996, respectively. In 2004, a number of insurance companies got the authorization for establishment, including the first agricultural insurance company, the first construction insurance company and the first pension insurance company. By the end of 2005, there are 93 insurance corporations altogether in China, among which six were insurance groups and 82 were insurance companies (including 40 foreign insurance companies and 5 insurance asset management companies).
Nevertheless, Chinese insurance industry is still at the initial stage. The unbalanced development of economy caused the difference in the development of insurance industry in different areas. For instance, in Guangdong and Shanghai, the insurance market is abundant in both demand and supply, which is far more prosperous than that of Central and Western China. There is limited opening of the insurance market to selected foreign insurance companies. Besides, to protect domestic insurers, geographic limitations were placed on foreign insurers as well as restrictions on their scope of business. Management license is needed, whereas, the speed to release the license is very slow. The leading insurance companies are still the Chinese domestic insurance organization. The People's Insurance Company of China controls 68% non-life insurance, and for the life insurance market three Chinese insurance occupy 87% of the market shares (Ding, 2006).
a. The culture of India
India has the second largest population of 1billion people, among which 0.82 billion are Hindu, 0.11billion are Muslim, 2.7 million Nazarene, and also some Buddhist. Different religious has different habit. For example, Hindu worship cattle and protest against butchering cattle. In recent years, there are conflicts between Indian culture and western culture, seriously. On February 14th, 2001, Indian religious group organized a pageant to oppose the Saint Valentine's Day.
In India, there's no 'Indian' language. Eighteen languages are officially recognized by the constitution, but over 1600 minor languages and dialects were listed in the 1991 census. Hindi is the predominant language in the north, while in the south, very few people speak Hindi. The Indian upper class clings to English. Only about 3% of Indians have a firm grasp of the language (Alan, 2006).
b. The economic and legal conditions of India and its economic policies
India's population continues to grow at about 1.8% per year and is estimated at one billion. While its GDP is low in dollar terms, India has the world's 13th-largest GNP. About 62% of the population depends directly on agriculture. Industry and services sectors are growing in importance and account for 26% and 48% of GDP, respectively, while agriculture contributes about 25.6% of GDP. More than 35% of the population lives below the poverty line, but a large and growing middle class of 150-200 million has disposable income for consumer goods. The economy develops fast in India, in recent years and it has posted an excellent average GDP growth of 6.8% since 1994.A growth rate of above 8% was achieved by the Indian economy during the year 2003-04. Indian economy has steadily increased since 1979, at the average rate of 5.7% per year in the 23-year growth record. Indian economic growth is constrained, however, by inadequate infrastructure, cumbersome bureaucratic procedures, and high real interest rates(Mulford , 2005).
In conclusion, from the deep research on the Chinese and India insurance, different conditions for insurance is clear to us. Although both markets are potential, Chinese insurance market is more preferential for the Allianz group to further develop. Meanwhile, it is urgent to develop, or Allianz may loss the huge market in future under the sever competition. This essay analyses the general development of the insurance market and the insurance market conditions of China and India, respectively. Through comparison it draws the conclusion that the Allianz Group should extend its business in china first. Furthermore recommendations are brought forth to choose the appropriate method to enter Chinese insurance market.
