By the end of the first quarter this year, 49 foreign insurance
companies have established 132 headquarters and branches in China,
said an official with China Insurance Regulatory Commission.
Foreign insurers now take nearly four percent of China's market
shares, up 2.3 percentage points compared with that before China
joined the World Trade Organization in 2001, said the official.
Shares in foreign capital-favored areas such as Beijing,
Shanghai and Guangdong have reached 13 percent, 19 percent and 10
percent respectively, he added.
Commission sources said foreign insurance companies have chalked
up 25.9 billion yuan (US$3.4 billion) in premium earnings by the
end of 2006 while they collected just 3.3 billion yuan (US$429
million) in 2001.
The official said China's insurance industry is yet to be
developed and Chinese companies lag behind their foreign
counterparts.
He said the commission will continue to open up the market and
encourage foreign insurers to take an active role in key realms
including pension, healthcare, agriculture and liability
insurance.
The official hoped more foreign companies will set up branches
in the central and western regions. He also pledged the commission
will strengthen supervision over insurers' paying ability,
marketing behaviors and company management in a bid to safeguard
China's financial security.
(Xinhua News Agency May 4, 2007)