1. State Farm Insurance: Challenges to Entry into International Market

2. Introduction State Farm Insurance Company
Founded in 1922 by George Merchele
Auto insurance
Insurance, banking and financial services

3. Goals of Expansion to International Market
State Farm plans to expand internationally in the following countries:
Countries : Canada
China
State Farm Faces Business Challenges and Legal Risks in the process

4. Business Challenges in China
Finding Qualified Human Resource in China
Administration licensing for Insurance Companies
Lack of Consumer awareness in the Chines market about Insurance Policies

5. Business Challenges in China cont.
Competition from other International Insurance companies already working in China.
Competition with Chinese Insurance Companies,
The need for policy reforms by China Government

6. Legal Risks in China Issues of Transparency
Legal Restrictions on Inbound Investments
Minimum amount of Registered Capital for foreign insurance companies.

7. Legal Risks in China cont.
Provisional Regulation of Equity Investment in Insurance Companies in China
Policy Risks in Premium Rate Control
Insurance Legal Disputes Harassment

8. Conclusion Great opportunities entering the international market.
Follow all the legal rules governing international trade.
Failure the guidelines lead serious legal difficulties.
Failing the legal guidelines lead to the loss of the society’s goodwill and following loss of business.