How does China adjust its Insurance Industry after entry of WTO
- This is a preview of the essay.
To view the full text you must login!
According to Chinas commitments upon entry to the WTO, its insurance industry will be fully opened within 3 years. The insurance industry is said to be had the highest intensity of opening up among Chinas three key industries. Indeed, this is very true, for the past 2 decades, Chinas insurance sector witnessing an annual 30% growth rate in Premium. However, it still remains a trivial part of the countrys overall financial portfolio, making up only 3% of the countrys total financial assets, much less than its rivals (ride-ful) in the banking and securities sectors. CIRC (China Insurance Regulatory Commission), the top watchdog agency overseeing Chinas insurance industry; is an organization which does not only take measures to speed up growth in its Insurance Sector, but also supervise the development of the industry.
China stressed that it will stick to its WTO commitments for the gradual opening of its insurance industry. The commitments include:
1.Overseas non-life insurers will be allowed to own a maximum of 51 percent of their joint ventures on China's mainland now, and can establish wholly owned sub-branches in two years.
2.Overseas life insurers are permitted to hold a maximum of half of their joint ventures on themainland and they can choose their domestic partners freely...