| Summary: | 碩士 === 世新大學 === 企業管理研究所(含碩專班) === 100 === The Memorandum of Understanding (MOU) signed by both sides of the Strait and the successive signing of Economic Cooperation Framework Agreement (ECFA) are both of great significance to Taiwanese non-life insurance industry’s development in mainland China. The objective is to probe into “the reasons for the industry to disembark in mainland China, and the entry mode chosen after decision-making.”
The scope of the study covers Taiwanese non-life insurance industry’s strategic arrangement in mainland China, cross-strait insurance supervision regulations, and existing condition for cross-strait interaction. It also poses a comprehensive review on whether Taiwanese non-life insurance industry should directly invest in the high-involvement establishment of joint ventures, branches, subsidiaries and capital participation, or low-involvement strategic alliance mode.
The findings reveal that due to legal constraint posed by cross-strait insurance supervision regulations and the demanding requirement on the entry of investment, there is no substantial benefit to Taiwanese non-life insurance Industry’s direct investment in China; even both sides had signed MOU and ECFA.
1. Subsidiaries or branches can not be founded as sole proprietor by means of direct investment because of legal constraint of Taiwanese regulations and Chinese “532” limitation.
2. Equity participation model requires an asset scale over 2 billion U.S.dollars; now only one out of all Taiwanese non-life insurance companies meets the requirement. However, those owned by financial holding companies can participate in the names of their parent companies in this model.
Therefore, weighing the not so big scale of Taiwanese non-life insurance industry, tight entry condition, and high risks of laws and decrees, the best entry mode that should be utilized is the low-involvement level of “strategic alliance”. Participation in reinsurance business of mainland Chinese local insurance companies can not only facilitate the understanding of local market and industry competition status in advance while share the fast-growing interests, but also contribute to immediate entry in Chinese market, the decrease of run-in period, and the seizure of initiatives.
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