Sylvie Ouziel, CEO assistance and member of the Board of Allianz Partners Group. Photo: Courtesy of Allianz Partners

Despite a vehicle sales slump in China, foreign insurers see new market opportunities in consumer-tailored services and secondhand cars, industry insiders said. 

The Chinese auto sector's emerging mobility trends such as new-energy vehicles (NEVs) and autonomous driving also bode well for their business expansion amid China's economic upgrade.

"China's car market is maturing and reaching an inflection point, so car manufacturers need to differentiate themselves with more services and experience" and offering different packages of car insurance and added-value services may be a selling point to potential buyers, Sylvie Ouziel, CEO assistance and member of the Board of Allianz Partners Group, told the Global Times. The France-based company is one of the world's largest insurance and assistance companies.

In April, the world's largest auto market saw a sales decline of 14.6 percent from the same month a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM). 

Ouziel said that along with the sales slowdown there is an expanding secondhand car market, which could offer lucrative opportunities for selling extended warranties and other associated services. "The owners of used cars demand more such insurance and services than those of new cars." 

In a departure from the general trend, sales of NEVs have been a bright spot. In April, NEV sales rose 18.1 percent to 97,000 vehicles, CAAM data showed. Ouziel stressed that Allianz Partners will seize new opportunities in the auto industry, not only in the NEV sector but also car-hailing, car leasing and autonomous driving.

The company has been working with the China Insurance Information Technology Management Co to analyze China's NEV market and identify the specific risks of electric vehicles. "For NEVs, the battery could be a question with regard to the value of the battery and lifespan of batteries," Ouziel said, indicating that Allianz Partners could explore more products to meet market demand.

She also noted that Allianz Partners has plans to launch more products for fleet companies, such as selling extended warranties, helping them recruit and train drivers and even plan schedules for drivers. The company has worked with an automaker to set up a ride-hailing fleet in Southwest China's Sichuan Province, according to media reports. As for autonomous driving, Allianz also has worked with local research institutions on related studies in Shanghai.

"China's economy is upgrading to a quality-driven model, and we will provide more services to bring convenience to daily life," Ouziel noted.

In 2018, Allianz Partners' Group revenue reached 8.616 billion euros ($9.62 billion), up 1.7 percent year-on-year.
Newspaper headline: New trends in nation’s auto market offer lucrative opportunities