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Foreign Funds Enter Insurance Market Faster
Last year, two joint ventures and branches of another two insurance companies were allowed to enter the Chinese insurance market, showing an accelerated opening up pace of the Chinese insurance market, said Ma Yongwei, Chairman of the China Insurance Regulatory Commission.
The Chinese insurance industry, Ma said, has carefully analyzed the impact of China's pending entry into the World Trade Organization(WTO) and has taken measures, according the latest issue of Beijing Review.
The commission has drafted regulations on foreign insurance companies and submitted them to the State Council. In addition, the commission eliminated some laws and regulations unfit for the regulations of the WTO and permitted another four Chinese companies to cooperate with foreign partners in life insurance.
The commission also strengthened cooperation with international insurance organizations and joined the International Insurance Regulatory Association.
Last year, eight insurance brokers, 33 professional insurance agents and three insurance arbitrating companies were given approval to set up, hence the main structure of the intermediary market came into being.
Ma claimed that China was trying to improve insurance laws and issued a series of laws and regulations. A new supervisory system will be built. Meanwhile, China has encouraged competition among different branches of the insurance companies by enlarging their rights and permitting them to do business in regions overseen by other branches.
Branches can now get big orders from customers in other regions. The commission also strengthened the rules on illegal activities. Last year, 38 branches were fined, some agents lost their certificates and three foreign funded agencies were closed down.
Today, the China Insurance Regulatory Commission has established 31 agencies in the country, with a nationwide supervisory system already up.
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