France's CNP Assurances to set up insurance JV with China's State Postal Bureau
France-based CNP Assurances SA signed an agreement with China’s State Postal Bureau (SPB) in Paris on September 23 to set up an insurance joint venture, scheduled to begin operations early next year, subject to approval by the China Insurance Regulatory Commission (CIRC), CNP said.
CNP said on its website the JV, to be located in a coastal city, will offer insurance policies through the SPB’s established sales network.
It said the life insurer has been in talks with the SPB on the proposed JV since September 2001, when it obtained a JV license from the CIRC.
China’s insurance sector has grown rapidly in recent years, with total insurance premiums rising 32.2 percent year-on-year to 210.9 billion yuan (US$25.41 billion) in 2001 and accounting for 2.2 percent of the country’s GDP.
Official figures indicate China’s insurance premiums rose 58.01 percent year-on-year to 160.82 billion yuan in the first half, of which life insurance premiums were up by 54.31 billion yuan at 118.68 billion yuan, and property and other insurance premiums increased by 4.73 billion yuan to 42.14 billion yuan.
In the next three years, China will lift limits on the regional operations of foreign insurance companies, in accordance with the country’s WTO commitments. The northeastern city of Dalian, Shenzhen and Foshan city in the southern province of Guangdong will become the first cities to be opened to foreign investors after the southern city of Guangzhou and Shanghai.
China is also expected to open 10 more cities, including Beijing, the southwestern municipality of Chongqing and the southwestern city of Chengdu.
China has promised to fully lift regional restrictions on insurers by 2005.
According to the China Insurance Regulatory Commission, China granted approval to 34 Sino-foreign insurance JVs by the beginning of June, including CITIC Prudential Life Insurance Co, Manulife-Sinochem Life Insurance Co and Allianz Dazhong Life Insurance Co Ltd.
The Standing Committee of China’s National People’s Congress has approved a revised insurance law, which will become effective on January 1 next year.
