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Liberty Mutual Insurance Co, the second largest US-based international property insurer, launched its first Chinese non-life insurance business in Chongqing Thursday, making it the first foreign insurer to debut its products in western China's business hub.
The launch marks a major achievement for Liberty Mutual as it had long been vying to enter the Chinese market. Prior to the move, the company submitted and refreshed its application in late 2000 and early 2002 and finally got the green light to open a branch from the China Insurance Regulatory Commission (CIRC) in November last year.
The move also highlights the accelerated opening-up of China's insurance sector in western China, which is still viewed as a less developed region for China's fragile insurance sectors.
Different from other life insurers that need to establish joint ventures with domestic partners, the Boston-based insurer's wholly-owned branch in Chongqing will introduce its non-life insurance products developed in other markets locally.
Backed by Liberty Mutual's insurance subsidiaries and associates in America, Europe and Asia, the Chongqing branch will provide commercial and consumer insurance services to both large and small enterprises and households, said Edmund F Kelly, chairman and president of Liberty Mutual, who made the special trip for the opening ceremony.
"The company will develop all non-life businesses, including property, workers compensation, employer compensation and marine insurance with the exception of personal auto insurance into the local market," said Kelly.
Liberty Mutual, with two foreign rivals, received approval in late 2002 to prepare to open a branch in China. That made the firm the first foreign insurer to get the green light to extend its business in western China.
China is essential to our aspirations in Asia, said Kelly.
Apart from Chongqing, the company has also established two representative offices in Beijing and Shanghai, which are believed to be among the branch's expansion targets.
"Opening in Beijing will be a wonderful opportunities for us," said Kelly, when asked about the next target for business expansion in China.
(China Daily January 16, 2004)
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