China's first three insurance brokerage firms were recently approved by the China's Insurance Regulatory Commission (CIRC), Xinhua has learned.

The three firms will be located in Beijing, Shanghai, and Guangzhou, and preparations for their formal launching have already begun, according to industry sources in Beijing.

China's insurance sector has been growing at a rate of more than 20 percent since insurers were allowed to resume business in the country in 1980.

The nation's premiums were worth some 139 billion yuan in 1999, compared to 13.1 billion yuan in 1989.

However, China had not formally approved a single insurance brokerage firm until now, which has kept major players out of the insurance market here.

Unlike the huge number of insurance agents in China employed by insurance firms to sell their products, brokers represent the interests of customers and are able to do much more in helping them choose, and even design, the best insurance policies for their needs, according to industry observers. (Xinhua)