Tower exits China as hope of licence continues to recede

Tower Corporation, the New Zealand based insurance and financial group, has given up its two and a half year effort to win an insurance operating licence in China. Tower spent nearly NZ$7mn (US$3.08mn) establishing a presence in China and persuading the appropriate authorities it could establish a successful joint partner insurance company there. The group put considerable effort into familiarising itself with Chinese business practice, the extensive regulatory regime governing the insurance industry and making sure the appropriate government officials were aware of Tower’s track record.