AIA Group, one of world's top 10 insurers, will strengthen its protection-oriented insurance business in China to meet market demand, said Mark Tucker, its executive director, on Thursday in Shanghai.

AIA will focus in China on the growth of life insurance premiums. Currently there is still a large gap between what Chinese families have bought and what they actually need in terms of life insurance, which creates a huge potential market, said Tucker.

In the third quarter of 2012, AIA saw a 22 percent increase in the value of new business to $300 million. The value of new business margin increased by 11 percentage points to 42.6 percent.

Cai Qiang, chief executive officer of AIA China's operation, said AIA strives to research and develop products that cater to the specific needs of China's market, including those of pensioners.

The company will pay more attention to research into, and meet the demands of, the domestic market and local customers instead of chasing short-term profits without recognizing the importance of a long-term commitment to customers.

AIA China is planning to open a new outlet in Shanghai in 2013, according to Cai.

[email protected]