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Major Chinese Insurer, Bank Sign Co-op Pact
The Construction Bank of China (CBC) and the People's Insurance Company of China (PICC) Friday signed an agreement for long-term and all-round co-operation.
According to the agreement, the two sides will be the agent of the other side. The CBC will collect premiums and pay out claims on behalf of the PICC.
They will also co-operate in fund settlement, deposits and other fields.
Tang Yunxiang, the general manager of PICC, said co-operation with CBC will greatly reduce his company's costs and expand its business. At the same time, it will open a new intermediate business for CBC and lower its operating risk.
Wang Xuebing, governor of CBC, said the long-term cooperative relationship will allow the two sides to share their resources for mutual development.
He called the pact an important move on both sides to address the challenges facing them with China's coming accession to the WTO, which will expose domestic financial institutions to tougher foreign competition.
Co-operation between China's largest commercial bank and property insurance company has set a good example for Chinese financial enterprises and will have an important impact on China's financial sector, analysts said.
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