Aug. 6, 2010 (China Knowledge) - China is considering opening the compulsory automobile insurance market to foreign investors, sources reported, citing people familiar with the matter, as saying. Pursuant to the report, the China Insurance Regulatory Commission may allow foreign firms to offer mandatory liability insurance service to the Chinese customers.
Currently, foreign insurers are allowed to provide some optional car insurance products.
China opened its market to foreign insurers in 2004 upon its entry in World Trade Organization. At present, foreign insurers accounts for only 4% of the US$164 billion insurance market in China. The move will undoubtedly boost their business in the world’s biggest car market.
Foreign insurers' market share has risen by less than 2 percentage points from 2.3% in 2004. Only three out of 24 foreign life insurers made a profit in 2008, according to a report compiled by CIRC.
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