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What is the status quo of the opening in Chinese insurance field?
What is the status quo of the opening in Chinese insurance field?
As to the insurance field, "Management Regulations of the People's Republic of China on Foreign-invested Insurance Companies" was promulgated in December 2001 and became effective on January 1, 2002. By the end of September 2002, there were totally 32 foreign-invested insurance companies which had established 53 operations within Chinese territory, including 27 operations of the 19 life insurance companies and 26 of the 13 non-life insurance companies.
Chinese government will gradually open Chinese insurance markets in light of its WTO commitments. As to non-life insurance companies, foreign investors are permitted to hold these companies subsequent to China's accession to WTO, and wholly foreign-owned subsidiaries will be permitted to be established in the two years from China's accession to WTO. As to life insurance companies, joint ventures are permitted to be set up, of which foreign parties can hold 50% of the shares at the time of China's WTO accession and can select their partners at their own discretion. As to the territorial limitation, it will be gradually cancelled after China's WTO accession, and will be completely cancelled in the three years from the accession.
