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China opens up insurance sector in all-round way - official


2001-12-12
Xinhua

China will gradually open its insurance industry in an all-round way, following its entry into the World Trade Organization.

Feng Xiaozeng, a vice-chairman of the China Insurance Regulatory Commission, made this remark on Tuesday in Shanghai at an international forum on the opening, administration and development of the insurance industry.

He pointed out that China has announced its basic policies on the forms of foreign insurance players' entry into the local market, the ratio of shares in joint-venture insurance companies, zoning restrictions, the timetable for the opening, the business scope to be opened to overseas insurers, and the licensing of their businesses.

The overall opening of China's insurance industry will bring about new market opportunities and development scope, the official said. It will force local insurance companies to speed up their pace of restructuring and turn to the modern corporate mechanism, he added.

China has stipulated a series of regulations for its insurance industry following the WTO entry, and is now planning to abolish existing rules that are not compatible with the WTO rules, amend the Insurance Law, and later work out regulations governing the administration of insurance-related investment and re-insurance business, in accordance with the amended Insurance Law, according to the official.

Local insurance companies that are considered mature for listing will be encouraged to go public on the stock market, Feng noted.



   
 
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