Foreign insurance companies hold as much as an 18-percent share of the insurance market in the Chinese cities of Shanghai and Guangzhou, said a senior official with the China Insurance Regulatory Commission (CIRC) on Wednesday.

Li Kemu, vice chairman of the CIRC, said at the third International Financial Forum that foreign insurance companies have experienced stable development in the Chinese market and have an average market share of six percent across the country.

A market pattern of fair competition is emerging and Chinese and foreign insurance companies are developing alongside each other, he said.

There are currently over 40 foreign insurance companies involved in the Chinese market.

The participation of these companies, with their advanced management methods, will contribute to the healthy development of China's insurance industry, said Li.

The Chinese government has authorized insurers to invest in urban development projects.

The expansion of investment channels requires new regulations to be issued to prevent risks, said Li.

As the supervisory body of China's insurance market, the CIRC should improve its supervision system to ensure the market be standardized and able to develop, he said.

Source: Xinhua