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)