Brussels, 28/09/2001 (Agence Europe) - China has just given the go-ahead to eight European insurers to set up business on a market gradually opening up to competition following Beijing's accession to the World Trade Organisation (WTO).
Of the eight insurers concerned, only six have received new licences, three of which for life-insurance (Britain's CGNU, France's CNP and Transamerica, a 100 American subsidiary of the Dutch Aegon) and three others for damage-insurance (Germany's Allianz and Gerling, as well as Switzerland's Zurich). Two other insurers have had their licences extended: France's Axa in life-insurance and Britain's Royal and Sun Alliance in damage-insurance. Under the terms of the agreement concluded in May 2000 with the EU, China undertook to provide a total of seven licences to European insurers within 60 days, but, having issued operating licences to the Italian Generali and Dutch ING Insurance to sell life-insurance, it let it be known that it would only grant the remaining licences once it had joined the WTO. For now, China only authorises foreign insurers to operate in one city, in 50% partnership with a Chinese company, and in the sole sectors of life- and damage-insurance. Only three cities are open to foreign insurers: Shanghai (East), Canton and Shenzen (South), but this number should increase to five following Beijing's accession to the WTO and ten two years later. China is, with India, the largest insurance market in Asia, with expected growth of 10% for the life-insurance sector and some 8.5% for the non-life sector.