Brokers beefed-up ahead of trade deal
Three domestic companies have won approval to do insurance broking as part of an attempt by Beijing to beef up its fledgling industry before entry to the World Trade Organisation.
China Insurance Regulatory Commission (CIRC) officials said approvals were granted to Beijing-based Jiangtai, Shanghai-based Dongda and Guangdong-based Changcheng.
Unlike Sedgwick Insurance & Risk Management Consultants (China), whose broking licence is restricted to risk-management, the trio would be allowed to operate broking businesses, the officials said.
But they would only be allowed to serve mainland customers, the officials said.
They said the three companies were newly formed shareholding companies, founded by enterprises, and not subsidiaries of insurance companies.
Under broking rules issued last year, companies should have at least 10 million yuan (about HK$9.34 million) in paid-up capital, have at least seven institutions as founding shareholders and at least six individuals as founders.
Mainland newspapers reported yesterday that six mainland insurance companies, including China Minsheng Group, were awaiting State Council approval to set up insurance companies on the mainland.
The other companies included Dongfang, Qingan, Dongan and China Life.
Of the companies, five were life insurance and one general insurance.