Chinese Insurance Sector Reports 32.2% Growth

February 5, 2002

Judging from a report by Xinhua, the official Chinese news agency, the insurance market in the People’s Republic is thriving with total income for 2001 of 210.94 billion yuan ($25.5 billion), a 32.2 percent increase over 2000’s results.

The agency’s report, monitored by the BBC, gave details of remarks by Ma Yongwei, the chairman of the China Insurance Regulatory Commission. According to Ma the property market totaled $ 8.28 billion, a 14.6 percent increase over the year 2000, but the biggest gains were in the life sector, where total premiums written reached $17.2 billion, a 42.8 percent jump..

He also indicated that the number of companies in the insurance sector was increasing as well. There are now 52, “made up of five state-owned companies, 15 share-holding companies, 19 joint ventures and 13 foreign-funded enterprises. Insurance agencies numbered 170,” the BBC reported.

He also indicated that the market was becoming more sophisticated, offering unit linked life products, which accounted for 32.2 percent of total life earnings and “inveestment-oriented” house property insurance.

Profits on insurance sales increased to 5.06 yuan ($ 611 million) up 34.9 percent over year 2000 figures.

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