Publications
Publications
- August 2008
- HBS Case Collection
The Chubb Corporation in China
By: Li Jin, Michael Shih-ta Chen and Aldo Sesia
Abstract
The Chubb Corporation, headquartered in the U.S., was the holding company for a number of property and casualty insurance companies which operated in 29 countries. In 1979, the Chinese government, as part of its "reform and open" policy invited a delegation of Chubb executives to discuss insurance issues. In the mid-1990s, Chubb opened representative offices in Beijing, Shanghai, and Shenzhen to do market research and assess the potential of the Chinese insurance market. In 2000, China authorized Chubb (one of only three foreign insurers) to sell insurance in the country. During the next five years China's non-life insurance industry grew from $8.3 billion in 2001 to $15.9 billion in 2005. Yet in 2007, domestic insurers continued to dominate market share and, Chubb had not realized the profits it had anticipated. The case provides an overview of property and casualty insurance, the Chinese insurance market and the challenges that foreign-based insurers have in entering an emerging market. Students are asked to decide what Chubb's China strategy should be moving forward.
Keywords
Insurance; Globalized Firms and Management; Growth and Development Strategy; Emerging Markets; Market Entry and Exit; Business and Government Relations; Insurance Industry; China; United States
Citation
Jin, Li, Michael Shih-ta Chen, and Aldo Sesia. "The Chubb Corporation in China." Harvard Business School Case 209-021, August 2008.