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China to Boast an Insurance Asset of Trillion Yuan in 5 Years
According to sources from a national conference touting insurance on January 15, China's insurance industry in the coming five years will keep up a 12% growth and for a premium amount of 280 billion yuan it will come to have an insurance asset of 1 trillion yuan by 2005. To be specific, the asset is to be 2.3% of China's GDP over present 1.7% and the per-capita premium will grow from 127 yuan to 230 yuan.
As were told by figures from the National Insurance Regulatory Commission (CIRC), in China there were launched altogether by the end of last year 32 domestic insurance companies in addition to 199 agent offices representing 112 foreign companies from 19 countries and regions. But the country still faces a small number of market entities, a smaller amount of insurance capital and not many people buying commercial insurance when compared with developed countries and a high world average level. Hence a big room remains for China's development in the areas said.
According to targets set for the 10th Five-year Plan, China's per-capita GDP is to reach an annual amount of 9,200 yuan by 2005 so as to lay a solid foundation for development of its insurance industry. China's insurance industry will be greatly expanded following an increasingly enlarged number of aged people, accelerated urbanization and many a varied other social, economic and productive lines and causes to be developed with increased demands raised for insurance to be developed.
China's insurance market will see an integrated pattern to be developed in the coming five years. State-owned insurance companies and those with shares held by the State will be in a dominating number and their management level will be raised remarkably; companies under a share-holding system will achieve rapid growth and be further expanded. Intermediary and re-insurance markets will be basically set up and a countrywide insurance market will be fully opened. Chinese and foreign insurance companies will have equal chances for competition. All in all, a mature insurance market with Chinese characteristics will be duly initially formed in China.
By PD Online staff member Deng Gang
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