Marsh announced it has been awarded China’s first ever Wholly-Owned Foreign Enterprise (WOFE) insurance broking license. The bulletin said the “new license provisions, subject to tax and regulatory approvals, are in-line with China’s World Trade Organization commitments to open its insurance industry to foreign investment.
“Under terms of the new licensing agreement, Marsh’s existing risk consulting business will have its scope expanded in China to include brokerage for insurance of large scale commercial risk, brokerage for reinsurance, brokerage for international marine, aviation, and transport insurance. The firm will operate in China as Marsh (Beijing) Insurance Brokers Co. Ltd.”
“We are very grateful to the Chinese insurance regulator, China Insurance Regulatory Commission, for awarding Marsh the first WOFE insurance broking license in China,” stated Chairman and CEO, Brian Storms. “In turn, we will continue to use all of our global resources to support the development of a Chinese market that Marsh considers to be one of its most important globally.”
Until recently, brokers operating in China, have been required to have a Chinese partner with a controlling interest in the enterprise, so, as Marsh stressed, “the granting of a WOFE license to Marsh represents a significant development for foreign entities operating in China’s insurance market.”
Marsh’s Asia Pacific CEO, David Batchelor, expressed his excitement at being able to grow its operations and capabilities in China under the expanded terms of its new licensing, agreement. “Marsh has been in China for 25 years – first as a representative office, then as insurance and risk management consultants – and has devoted a great deal of time to building an understanding of the risk and insurance issues of Chinese and foreign multi-national businesses,” Batchelor noted. “Receiving this new license means Marsh’s clients in China now have access an unparalleled range of services being delivered through our firm’s global network of risk and insurance specialists – an unmatched proposition anywhere in the world.”
Marsh CEO of Greater China Region, Paul Wilkins, based in Beijing, said Marsh has an ever-increasing portfolio of global clients who are active and expanding in China, or looking at entering the market. He indicated that the China Insurance Regulatory Commission “has been driving an increased awareness of risk management among Chinese businesses. Within China we have been supporting this activity, particularly in major risk and insurance management sectors like aviation, space, marine and energy, and financial institutions. We are delighted with the prospect of providing new product opportunities to enrich the expanding Chinese market.”
Marsh has previously provided risk management and insurance broking services from three offices in China – Beijing, Shanghai, and Guangzhou. The firm has communicated future expansion plans into Chengdu, Western China, subject to CIRC approval.
“We have seen an increasing demand for more sophisticated risk and insurance solutions from local Chinese companies, and we are well prepared to support them, both in China and as they go global,” Wilkins added. “We see great interest in areas such as Directors’ & Officers’ liability, environmental issues, pandemic preparedness and product liability. We are actively recruiting and training colleagues in China to support our clients’ growth and our firm’s expansion of services.”
Topics Agencies Legislation China
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