China
The Horton Group features a Representative Office in Beijing, China that is staffed by an insurance professional who possesses intimate knowledge of the Chinese insurance marketplace and speaks both Chinese and English. For Horton clients who have exposures or interests in China, this resource is extremely valuable and incredibly unique for a broker of our size.
Horton China Desk
The Horton Group also works in conjunction with other insurance brokers to assist them in addressing their client needs in China.
An ever-larger number of small and mid-sized U.S. businesses are reaching into China to expand their production capabilities and/or reduce costs. When this occurs, the insurance broker handling the U.S. account will typically be asked to secure coverage for the new operations in China as well. This often presents a new challenge, as the Chinese insurance market is complex, relatively immature, and changing very quickly.
The Horton China Desk is uniquely suited to assist U.S. brokers having service needs in China because Horton has employees located in both the United States and China. By working together, these insurance professionals are able to tap directly into the China market and then deliver answers, quotations, policies and service via their China office to brokers throughout the United States.
Insurance Products Available
Property/Casualty
Property (admitted China paper)
General Liability (admitted China paper)
Products Liability (admitted China paper)
Automobile (compulsory in China)
Employer’s Liability (offered by preferred employers in China)
Construction Worker Insurance (compulsory in China as of 2004)
International Difference in Conditions – DIC (written by U.S. carrier in the States)
International Workers’ Compensation – for U.S. employees working in China (written by U.S. carrier in the States)
Ocean Cargo
Employee Benefits
International Health Insurance (for U.S. individuals working and/or living in China)
Kidnap & Ransom
Medical Evacuation / Repatriation Social Security Schemes (these are handled through the local Chinese labor bureaus)
Frequently Asked Questions (FAQ’s)
Q – Where is the Horton China Desk located?
A – The U.S. portion of the Horton China Desk is located in Orland Park, IL (Chicago). The China segment of the Horton China Desk is in Beijing, China.
Q – Can Horton write coverage and provide insurance services throughout China?
A – Yes. We’re based in Beijing but can place and service customers throughout China.
Q – How many insurance carriers does the Horton China Desk work with?
A – There are currently 12 domestic Chinese insurance companies and another 10-12 foreign carriers licensed in China that we can access. However, new carriers are entering the Chinese market every quarter.
Q – Can’t a U.S. broker just work with a U.S. insurance carrier, such as Chubb or AIG, to secure any covers needed in China?
A – Perhaps. However, by utilizing this method you will only receive one quote option and that carrier will typically access only one local Chinese market. Furthermore, minimum premiums can be higher than what the Horton China Desk can negotiate and the turnaround time may be much slower. Also, you will not have direct access to service personnel located in China who will work on behalf of your client to handle any problems, claims or special circumstances.
Q – What insurance coverages in China are compulsory?
A – Third-party auto liability is compulsory. Construction Workers’ Insurance is compulsory as of 2004. Work-related Injury Insurance is also compulsory, but is addressed via the Chinese social security system requirement.
Q – Are coverage and conditions throughout China consistent?
A – As is the case in the U.S., location and geographical restrictions are important factors to consider when designing an insurance program in China.
Q – Are property coverages in China similar to those in the U.S.?
A – All-risk forms are available. Mechanical breakdown and business interruption covers are typically placed independently of each other. Earthquake is a standard exclusion. Windstorm and Flood coverage depends upon location.
Q – Is liability coverage in China different than in the U.S.?
A – Basic Public liability is written on an occurrence basis and Product liability is written on a claims-made basis. Limited professional indemnity and D&O options are available. Jurisdiction is limited to the People’s Republic of China (PRC).
Q – How is Workers’ Compensation and Employer’s Liability handled in China?
A – Employer’s Liability in China functions somewhat like Work Comp in the U.S. Workers can be compensated when they are injured or killed on the job. However, the limits involved are much lower than what we are accustomed to seeing in the U.S. Employer’s Liability coverage is not compulsory, however, preferred employers will offer it to attract and retain the better workers. There is not a true Workers’ Compensation system in China that functions anything like what is present in the U.S.
Q – What does the Horton China Desk charge for their services? How are commissions shared?
A –The Horton China Desk will retain the first $1,500 in commission from any account that we place in China. We will then split on a 50/50 basis any commission revenue in excess of $1,500 per account. If the Horton China Desk works with a broker to secure any U.S. coverages, such as International DIC or International Health Insurance, those commissions will also be split 50/50.
Q – Does the Horton China Desk charge a fee if there is no placement?
A – No. The above compensation scenario only applies if Horton is successful in placing the business.
Q – What currency is used to facilitate these transactions?
A – Most placements into China can be handled using U.S. dollars, if desired.
Q – Are insurance policies and quotations printed in English or Chinese?
A – Either is available, but we generally choose to work with English.
Contact Information
Horton China Desk – Orland Park, IL (Chicago)
- Phone – 800-355-4442
- Fax – 708-845-4390
- Email – chinadesk@thehortongroup.com
- Chicago China Desk Leader – Dan Horton
Horton China Desk – Beijing, China
- Phone - 8610-5856-5778
- Fax - 8610-5856-5778
- Email - liqiangzhaozz@gmail.com
- Beijing China Desk Leader - Johnny Zhao
|
