The world's biggest insurance brokerage, Marsh, has been approved as China's first licensed foreign broker, following the country's fulfillment of its WTO pledge to fully open its insurance market to foreign investment from Dec. 11, 2006.

 

The Wholly-Owned Foreign Enterprise (WOFE) insurance brokerage license will allow Marsh to conduct business independently of any Chinese partners.

 

Under the terms of the new license, Marsh's existing risk consulting business will grow to cover brokerage for insurance of large scale commercial risks, reinsurance, and international marine, aviation, and transport insurance, the company announced.

 

The firm will operate in China as Marsh (Beijing) Insurance Brokers Co. Ltd..

 

"We are very grateful to the Chinese insurance regulator, the China Insurance Regulatory Commission, for awarding Marsh the first such license in China," said Marsh chairman and CEO, Brian Storms. "In turn, we will continue to use all of our global resources to support the development of a Chinese market that Marsh considers to be one of its most important globally," he said.

 

Marsh has been based in China for 25 years, providing services from three field offices in Beijing, Shanghai and Guangzhou. Now, the firm is awaiting CIRC approval to extend its reach to Chengdu, in western Sichuan Province.

 

Foreign insurance brokers have long been vying for a niche in the lucrative Chinese market. Aon, a major US broker, teamed up with China National Cereals, Oil and Foodstuffs Import and Export Corporation in 2004 to explore the huge market.

 

London-based Willis followed suit, setting a joint venture with the Shanghai Pudong Insurance Brokers Co, Ltd to enter the fray.

 

Marsh, the world's leading risk and insurance services firm, has 26,000 employees, including around 100 in China, with annual revenues approaching US$5 billion.

 

(Xinhua News Agency January 26, 2007)