China's insurance mart

China's insurance mart

SHANGHAI (AFP): China is to open its insurance market wider to
foreign insurers while venturing overseas to compete in the
international insurance market, Xinhua news agency reported
yesterday.

The agency quoted Yu Hua, a central bank official, as saying
at a recent symposium in Shanghai that the number of insurance
companies in China currently was insufficient to meet demand.

The insurance sector earned 36.87 billion yuan (US$4.44
billion) in the first half of 1996, an increase of 32 percent
from the same period a year earlier, the report said.

There are only 21 insurance companies dealing in life and
property insurance in China, including seven which are foreign-
funded.

"This does not meet the growing demand, however, and much of
the insurance offered does not cover most aspects of life," Yu
said. "China will try to perfect its laws related to insurance
and to increase the number of insurance companies this year."