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Insurers call for simplified procedures

By Hu Yuanyuan (China Daily)
Updated: 2006-11-16 09:00

US insurance officials yesterday called on China's insurance regulator to simplify the licensing process for foreign firms in line with the country's World Trade Organization (WTO) commitments.

China has technically removed geographical restrictions on foreign insurers, but it still has a separate and more complex licensing process for foreigners in the burgeoning insurance industry, said delegates at the fourth Sino-US Insurance Conference.

"The separate licensing process slows down foreign insurers' pace of geographical expansion, and we hope the regulator can streamline those licensing requirements," said Timothy P. Stratford, assistant US Trade Representative.

Stratford cited Anbang Property & Casualty Insurance Company, a local insurer specializing in auto insurance, as an example of the unequal treatment between foreign and domestic insurers.

Anbang obtained four branch licences in December, allowing it to do business in Qinghai, Gansu provinces and the Tibet and Ningxia Hui autonomous regions, remote areas in western China.

"Foreign insurers could never get two branch licenses simultaneously," Stratford said.

However, according to Ming Xia, deputy director of the international department of the China Insurance Regulatory Commission (CIRC), China has given foreign insurer's fair treatment in line with the country's WTO commitments.

"There are no rules forbidding foreign insurers to apply for several branch licences at one time," Ming said.