China Urged to Set up Insurance Asset Management Companies

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Last updated at: (Beijing Time) Thursday, February 20, 2003

China Urged to Set up Insurance Asset Management Companies

China should set up specialized insurance asset management companies, says Zhao Minghao, deputy general manager and Chief Operating Officer for investments with the Huatai Property Insurance Company.

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China should set up specialized insurance asset management companies, says Zhao Minghao, deputy general manager and Chief Operating Officer for investments with the Huatai Property Insurance Company.

Such specialized management companies could better control investment risks and increase profits, he said Wednesday during the China Insurance Development Forum 2003.

Domestic insurance companies all set up internal investment departments, which would not be suitable when insurance assets expanded and investment varieties increased, Zhao said.

Insurance companies, as part of the financial sector, should bebased on financial investments. Insurance companies could currently invest in savings banks, bonds and funds, and probably in stocks and management funds in the future, he said.

Zhao said insurance asset management had become an important base for the healthy development of the insurance industry. The newly revised Insurance Law provided legal protection for the establishment of specialized insurance asset management institutions.

Some 80 percent of the world's top 34 insurance share-holding companies had specialized insurance asset management companies, hesaid.

By the end of 2002, the overall assets of China's insurance industry reached 649.41 billion yuan (81 billion US dollars), withusable assets reaching 579.93 billion yuan (72 billion US dollars).

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