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Last updated at: (Beijing Time) Tuesday, February 10, 2004

Insurance industry to be further spurred

Wu Dingfu, chairman of the China Insurance Regulatory Commission, said here Tuesday that China's insurance industry is facing the best opportunity ever in history and should have a faster growth.


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Wu Dingfu, chairman of the China Insurance Regulatory Commission, said here Tuesday that China's insurance industry is facing the best opportunity ever in history and should have a faster growth.

Wu said at the commission's annual work meeting that China's insurance industry has accumulated much experience and grew stronger after 20 years of development and the domestic legal system on insurance also took form, which created a precious opportunity for further expansion.

During the past two decades, insurance was one of the fastest growing industries in China, maintaining an average annual growth rate of around 30 percent.

Wu said risks are inevitable if insurance industry growth was further speeded up, but "to stop or slow down its growth would bring higher risks".

A recent survey of the Chinese people's purpose of saving indicated that over 40 percent of the country's total savings wereused for education, disease or retirement, which could also be secured by insurance.

Based on that survey, more than four trillion yuan (about 484 billion US dollars) can be used or connected with insurance, Wu acknowledged.

In addition, the medical bills paid by individuals in 2002 exceeded 300 billion yuan (some 26 billion US dollars), but the fees paid via commercial insurance only took six percent of the total and the commercial medical insurance covers only about threepercent of the total Chinese population.

Those statistics show that China's insurance industry has greatpotential and is far from being saturated, he said.


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