The insurance services sector has one of the largest service trade deficits in the country, second only to transportation services.

The insurance sector's deficit grew from US$2.36 billion in 2000 to US$6.65 billion in 2005, due to an expanding gap between imports and exports.

The country's insurance service trade saw its exports grow at an average annual growth rate of 38 percent in the past five years, gaining from US$110 million to US$550 million.

But that is a small number compared to imports, which jumped from US$2.47 billion to US$7.2 billion, with an average annual growth of 23.9 percent.

The insurance sectors slice of the market among China's service trades also increased from 0.4 percent to 0.7 percent.

The rising number of foreign insurance institutions coming to China is the best proof of the nation's efforts to open the market, says Li Kemu, vice-chairman of the China Insurance Regulatory Commission.

By December 15 of this year, 47 foreign insurers from 15 countries and regions will have set up 121 branches, sub-branches and sales offices in China. Nearly half of China's 100-plus insurance companies are now foreign owned or joint ventures.

(China Daily December 29, 2006)