CIRC urged to streamline licensing procedures

Foreign insurance company ING Insurance (Asia/Pacific) has called on the China Insurance Regulatory Commission (CIRC) to simplify its licensing procedures for foreign firms. ING has asked CIRC to improve foreign insurers' access to investment channels and their ability to expand geographically, according to China Daily.

Although China has honoured its Word Trade Organization (WTO) membership commitments by removing geographical restrictions on insurers, it has a separate and more complicated licensing process for foreign firms. Domestic firms opening offices in new locations can have their licences approved in one batch. However, foreign firms are required to have each new licence approved individually.

By the end of 2004, China met all its WTO obligations for the insurance sector, which become the nation's first fully-opened financial sector. China Daily reports that China now has over 100 insurers, of which 44 are foreign-funded or joint venture firms. Foreign insurers generally have 6% of the market share, with about an 18-20% share in big cities such as Shanghai and Guangzhou.