Shanghai and three provinces grouped into the Yangtze River Delta region will release their respective detailed economic action plans this month, that could spell increased business for insurance companies.
The integrated development of the Yangtze River Delta region has progressed steadily since it was elevated to a national strategy in 2018.
Mr Ma Chunlei, director of Yangtze River Delta Regional Cooperation Office, said at the Lujiazui Forum in Shanghai last month that around 320 key projects will be carried out in the next three years to lay a better groundwork for the integrated development of the region. These will include connecting roads and proliferating the use of QR codes at major subway stations in the area. The region is also home to two free trade zones in Shanghai and Zhejiang, reported China Daily.
Mr Kong Qingwei, chairman of China Pacific Insurance (Group) Co, said the Yangtze River Delta region is a key driver of the group's annual income and innovative development. Of the insurer's 126m customers in China, 30m live in the region, and account for CNY80bn ($11.7bn) or 25% of the insurer's total premiums of CNY320bn.
He said that there are plenty of opportunities for insurance companies in the Yangtze River Delta region, with transportation as a top priority.
"Insurance capital can help the government to boost domestic consumption. A comprehensive transportation network connecting railway, subway, ports and even airports has been a longstanding goal of many cities in this area. This is where insurers can play a big role," he said.
Insurers can find opportunities too in elderly care, said Mr Kong. In early June, China Pacific Insurance opened an elderly care community in Hangzhou, and is about to launch a new one in Nanjing.
"The idea is to let the senior citizens in Shanghai enjoy quality elderly care services in other parts of the Yangtze River Delta region. More room in Shanghai can thus be given to ambitious young entrepreneurs to set up their own businesses," he said.
The integration of risk prevention schemes for the rural sector in the region is another area on which insurers can focus, he said.
Dr He Haifeng, director of the Institute of Financial Policy, which is a part of the Chinese Academy of Social Sciences, said the integrated development of the delta region presents many latent challenges. So, more efforts should be made to reform financial and taxation areas, to reduce fees in various fields, and improve the overall business environment.