China - Insurance

The People's Insurance Co. of China (PICC), formed in 1949, is authorized to handle all kinds of insurance, including the insurance of China's foreign trade and foreign insurance operations in China. In 2001, the People's Insurance Co. of China controlled 78% of China's property/casualty insurance industry, with 4,200 branches and a workforce of 110,000. Two newer domestic Insurance Companies, China Pacific and Ping An, have 11% and 8%, respectively, of the market. Two additional state enterprises, the China Insurance Co. and the Tai Ping Insurance Co., are in operation, and several foreign insurance companies have established representative offices in Beijing. By October 1995, 77 insurance companies from over ten nations had established 199 agencies in China. Demand for insurance projects is predicted to grow as economic reforms limit the social security benefits provided by state enterprises. By 2001, life insurance permiums were growing at an average rate of nearly 70% per year, with nonlife premiums growing at around 15% per year.