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Sweden's Skandia Insurance Company Ltd was yesterday given the green light to start preparation for a life assurance joint venture in Beijing by China Insurance Regulatory Commission (CIRC).
The joint venture - the first of its kind approved by CIRC to start preparation for operation - is expected to begin providing services to Chinese clients in the first quarter of next year.
The new life insurance company has a registered capital of 200 million yuan (US$24 million) and is 50 per cent owned by the Swedish firm, a company spokesperson said.
The other 50 per cent is owned by the Beijing State-owned Assets Management Corporation Ltd, with which Skandia signed a joint venture agreement in June.
The spokesperson added that the joint venture aims to combine Skandia's strong technology and management expertise with the local resources and advantages of its Chinese partner.
CIRC officials said the entrance of foreign insurance companies enables China to learn from their technology and management expertise and this will facilitate the development of China's insurance industry.
China will approve more foreign insurers to sell policies in more areas to meet the commitment the nation made to the World Trade Organization.
China's insurance industry has enjoyed rapid growth in the past decade, making it one of the most lucrative markets for insurance companies.
(China Daily March 21, 2003)
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