Heng An Standard Life (HASL) has been given permission to open a pensions insurance business in China.
The firm, which is a joint venture between Standard Life Aberdeen and Chinese investment business Tianjin Teda International, is the ninth company to receive approval to set up a pensions insurance company.
According to Standard Life, it is also the first joint venture business to receive such permission in China.
“To be granted this approval is no small achievement,” said Gerry Grimstone, chairman of HASL.
The firm is eyeing long-term policies, including tax-incentivised savings, to support the transition.
Seismic shift in long-term savings
“As the pensions market in China looks set to go through fundamental reform to meet the challenges of an ageing population, Heng An Standard Life is exceptionally well positioned to support pension savers in this important market,” said Keith Skeoch, chief executive of Standard Life Aberdeen.
In fact, according to the firm, there are over 250 million people expected to hit age 60 by 2020. As a result, the Chinese long-term savings system is expected to shift from a predominantly state pension provision to a focus on occupational and individual savings.
“Through our long-term relationship with Tianjin Teda International; we have the infrastructure, distribution and local knowledge to develop our important strategic partnership in the world’s second largest economy,” Skeoch added.
HASL was created in 2003 and offers health, life and savings products in China and has been eager to roll out a pensions insurance product.
