Foreign-funded peers have no impact on insurance market

The introduction of foreign-funded insurance companies has not had any impact on the business and market order of the Chinese-funded insurance industry. This was spoken by Wu Dingfu, Chairman of China Insurance Regulatory Commission (CIRC), in the insurance work forum held recently in Beijing.

It has been outlined that altogether 41 foreign-funded insurance companies have been approved to enter China's market. Among the 46 insurance companies listed on the top 500 enterprises by "Fortune" magazine, 27 have set up business in China. In 2005, they made up 6.7% shares of the entire insurance market in China.

China's insurance industry has already established a business pattern from points to large coverage and costal regions to mainland areas. Foreign peers can offer all services except legitimate business throughout the country.

The "Several Proposals of the State Council on the Reform and Development of the Insurance Industry", published by the State Council recently, proposed that China must enhance international competitive power and ability for sustainable development by deepening its mechanism's reform, upgrading the governing structure and promoting the quality and level of opening up.

Wu Dingfu also said that China's insurance industry has prioritized well-known financial insurance groups with sufficient capital and advanced management; as well promoting the innovation of the Chinese-funded in management ideology, governing sector and interior control system. At the same time it makes greater efforts to guide the foreign-funded ones to develop insurance business in agriculture, age pension and health, so as encourage the development of relevant businesses.

By People's Daily Online