Scotsman.com Business - Banking & Insurance - RBS chief has Direct Line to China insurance model

Scotsman.com Business - Banking & Insurance - RBS chief has Direct Line to China insurance model: "RBS chief has Direct Line to China insurance model
ROYAL Bank of Scotland chief executive Sir Fred Goodwin believes his Direct Line insurance business is a model that could 'plug straight in' to the Chinese insurance market.
He said there was even the possibility that any general insurance operation RBS launched in one of the world's fastest-growing economies could carry the Direct Line branding.
He said there would be 'no-one happier than me' to see the brand's distinctive red telephone emblem plastered across China.
In China this week, Sir Fred was underlining his desire to see RBS take a foothold in China's largely untapped insurance market to help consolidate its position in a country with a population of 1.3 billion people.
Last year, RBS spent £900 million to buy a five per cent stake in Bank of China, which was seen as a platform to build upon, particularly in areas such as credit cards and wealth management.
Initially, RBS had been hesitant about the prospect of a general insurance operation in the Asian titan. 'We weren't sure about insurance,' Sir Fred said, adding that the issue of an insurance business in China had now become 'much clearer'. 'We do want to do general insurance,' he said.
Sir Fred seems convinced such a move is a possibility - as soon as legislation allows.
'We need to wait for some legislative changes to allow banks to own insurance companies, he said.
However, RBS currently has Ian Parker in Beijing laying the groundwork for entry."