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Last updated at: (Beijing Time) Friday, November 23, 2001

China Preparing to Further Open Insurance Market

During its negotiations for WTO membership, China made major commitments to allow non-life insurers, life insurers and foreign insurance firms to set up branches or solely-funded sub-firms and provide different services to the Chinese enterprises and Chinese people step by step. China also gave the timetable of the opening. (Click to see the timetable)


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The major commitments made by China in market opening during its negotiations for WTO membership are as follows:

Immediately after China's entry to the WTO, non-life insurers from abroad will be allowed to set up branches or joint ventures in China. Foreign firms will be able to hold as much as 51 percent of the stake in the joint ventures.

Two years after the entry, non-life insurance firms from abroad will be allowed to set up solely-funded sub-firms in China.

Immediately after the entry, foreign life insurers will be allowed to set up joint ventures in China, and hold no more than 50 percent of the stake in the joint ventures. They will also be allowed to choose their partners independently.

Immediately after the entry, foreign insurance firms will be allowed to offer services in Shanghai, Guangzhou, Dalian, Shenzhen and Foshan.

Two years after the entry, their business could be expanded to Beijing, Chengdu, Chongqing, Fuzhou, Suzhou, Xiamen, Ningbo, Shenyang, Wuhan and Tianjin.

All geographical restrictions will be lifted three years after the entry.

Immediately after the entry, non-life insurers from abroad will be permitted to offer non-life services to overseas enterprises, and property insurance to foreign-funded enterprises in China.

Two years after the entry, non-life insurers from abroad will be able to offer all kinds of non-life insurance services to Chinese and foreign customers.

Immediately after the entry, China is committed to abolishing the restrictions on the number of licenses issued to foreign insurers. Foreign insurers must satisfy the following conditions before applying for licenses in China: a business history of more than 30years in a WTO member, operating a representative office in China for two consecutive years and holding no less than US$5 billion in total assets as of the end of the year prior to the application.





Time (entry)

Firms (from abroad)
Contents
Regions
Immediatelynon-life insurersset up branches or joint venturesChina
Two years afternon-life insuranceset up solely-funded sub-firmsChina
Immediately life insurersset up joint venturesChina
Immediatelyinsurance firmsservicesShanghai, Guangzhou, Dalian, Shenzhen and Foshan
Two years after insurance firmsservicesBeijing, Chengdu, Chongqing, Fuzhou, Suzhou, Xiamen, Ningbo, Shenyang, Wuhan and Tianjin
Immediately non-life insurance

non-life services to overseas enterprises;
property insurance to foreign-funded enterprises

China
Two years afternon-life insurance

all kinds of non-life insurance to Chinese and foreign customers

China




China's Insurance Sector Reports Moderate Growth in First Half Year

China's insurance sector reported a moderate growth in the first half of the year, with premiums totaling 79.6 billion yuan, up 6.7 percent from the same period last year.

Premiums from property insurance rose by 9.4 percent to 32.9 billion yuan, while premiums from life insurance gained 4.9 percent to 46.7 billion yuan.

Assets of insurance firms amounted to 311.7 billion yuan by the end of June, an increase of 39 billion yuan from six months ago.



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