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Last updated at: (Beijing Time) Wednesday, December 05, 2001

CEOs from China's Top Four Insurance Companies Talk about Strategies

China's Insurance Regulatory Committee recently confirmed its basic commitments for quickening opening-up pace after China's entry into the WTO as competition from foreign insurance companies is close at hand. When interviewed by the reporter of Economic Daily, CEOs from China's top four insurance companies aired their views in response to challenges brought by China's entry into the WTO.


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China's insurance companies to face competition after the WTO entry

China's Insurance Regulatory Committee recently confirmed its basic commitments for quickening opening-up pace after China's entry into the WTO as competition from foreign insurance companies is close at hand. When interviewed by the reporter of Economic Daily, CEOs from China's top four insurance companies aired their views in response to challenges brought by China's entry into the WTO.

CEOs from four top companies stated their views

  • China Life Insurance Company
    "It doesn't necessarily mean success to have advantages in hand, nor does it tend to fail with difficulties," said Wang Xianzhang, General Manager of China Life Insurance Company. The main task at present, he added, is to inject incentives into the company, develop confidence and potentials and build it a first-class one within 8 to 10 years.

  • China Pacific Insurance Company
    The development of China's Insurance Industry depends on efforts of the Chinese people, indicated Wang Guoliang, Director of China Pacific Insurance Company. CPIC has launched its strategies to introduce foreign advanced experiences, prepare to list and conduct training for employees. It has set up sub-companies and agencies in New York and London, showing its operation is going for globalization.

  • China Ping An Insurance Company
    The Ping An Insurance Company was the first to realize its investment capital internationalized in China. Ma Mingzhe, the director introduced his three principles, namely market orientation, professional management and international criteria. He noted the company would reform in line with the strategies, organizations and operations of international giant financial groups in the future.

  • China Xinhua Life Insurance Company
    Xinhua Life Insurance Company is a non-state-owned shareholding company. Guan Guoliang, the director said his company has been familiar with marketing operations. With one-forth of its capital from foreign investment, Xinhua's main task after the entry of the WTO is to cooperate with international financial groups and enterprises, followed by competition with them.



    China's Insurance Industry Registers Rapid Growth


    China's insurance industry has maintained a robust growth momentum in this year.

    Life insurance premiums stood at 74 billion yuan or an annual increase of 40.2 percent, while that of property insurance totaled 42.3 billion yuan during the same period.

    Domestic insurance companies registered a combined premium of 114.5 billion yuan, up 30 percent, while overseas insurers earned a premium of 1.8 billion yuan.

    China's insurance industry recorded a 14.5 percent growth in terms of premium income in 2000, according to CIRC figures.

    Moreover, the business scope of foreign insurance companies will be expanded step by step.

    For example, regulations stipulate that foreign insurance companies now may handle personal marketing business only. Three to five years after China joins the World Trade Organization, they will be permitted to handle business in medical insurance, pension insurance, etc.



    by PD Online Staff Yang Ruoqian
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