China has experienced unprecedented growth in the insurance field. The total amount of premiums reached 100,611,940,000 USD in 2007. The total amount of premiums reached 80,672,020,000 USD in 2006 ranking it eleventh out of all countries in the world. Moreover, the total financial holdings of insurance companies in 2007 amounted to 414,756,056,000 USD, one-third larger than total holdings in 2005. Presently, there are more than 100 insurance companies in China, and more than 3000 insurance intermediary companies which include businesses specializing in broker, agency, and loss adjuster services.
In accordance with China’s commitments in joining the World Trade Organization (WTO), all types of insurance services were to be opened up to foreign investment by the end of 2004. Nonetheless, factual restrictions still remain for foreign investors. This contributes, along with the only recent allowance of foreign investment, for the success of domestic over foreign insurance companies regarding market share. The extensive history of these foreign companies in different markets, however, is a major reason why foreign companies are now rapidly increasing their market share in China’s insurance industry.
The potential growth of the Chinese insurance market is extraordinary and the future outlook is promising for foreign and domestic investors.