Saving You Money For Life

Our continuing spot check on the Westernization of the Chinese economy shows that the insurance industry has gained serious traction. Annual premiums in the Chinese market are expected to double by 2010, driven by people’s growing demand and constant product innovation, said the state insurance watchdog.

During the 2006-2010 period, as Chinese people spend more money on cars, houses, education and travel, insurance demand will grow, according to a document released by the China Insurance Regulatory Commission. The result will be an increase to $126 billion U.S. or one trillion yuan, an increase of 100% in five years.

With a 1.3 billion population and an aging society, China will see insurance play greater role in the improvement of social services during this period, particularly in the medical service and pension sectors, according to the Commission. In concert with this growth, the regulatory body also noted that China has vowed to create a healthy environment for the development of the insurance industry before 2010, with an improved legal system and enhanced awareness of insurance.

Insurance companies are being urged to explore markets, introduce more product varieties and improve existing risk-analysis systems. By 2010, China plans to build a modern insurance industry with a batch of large insurance companies with international competitiveness – again according to the Commission.

China’s current insurance premium total places them 11th in the world; the industry witnessed a 25 per cent annual increase from 2000 to 2005. Under its agreement with the World Trade Organization, China is expected to fully open its financial markets to foreign competitors by the end of 2006. Snoopy goes to Shanghai?

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