China sets up its first health insurance company

China's first health insurance company, China People's Health Insurance Company Limited, was set up Friday in Beijing.

China People's Health Insurance, which will be headquartered in Beijing, is a joint venture company with registered capital of one billion yuan. China Life Insurance Company Limited, the country's largest life insurance operator, holds 51 percent of the company's shares. Europe's largest commercial health insurance operator German DKV has 19 percent of the company's shares. The rest of the shares are owned by three domestic companies.

The new company will develop three kinds of health insurance, which respectively target general medical treatment, serious diseases and accidents.

China Insurance Regulatory Commission (CIRC), China's insurance regulator, has ratified five health insurance companies, of which China People's Health Insurance is the first to start operation.

Sources with the CIRC show that life insurance and asset insurance companies in China all run health insurance businesses.

Last year, the total income of health insurance fees accumulated to 25.99 billion yuan, up 7.42 percent year-on-year. In the first quarter this year, the national health insurance fees was 7.678 billion yuan with a year-on-year rise of 23.78 percent. (1 dollar= 8.27 yuan.)