Three new insurers join increasingly crowded sector

Competition in China’s insurance sector is set to intensify even further, after three new insurers — backed by some of the country’s leading corporates — were given permission to launch new operations on Friday.

The China Insurance Regulatory Commission (CIRC), China’s top insurance regulator, said it had given approval to Fosun United Health Insurance, Hetai, and Aixin Life.

All have one year to prepare to launch, and a final review of their operations will then be carried out by the regulator

Fosun United Health Insurance is backed by Shanghai Fosun Industrial Investment, a subsidiary of Fosun International, the mainland based conglomerate, and five other private companies. It will become Fosun’s eighth insurance platform.

Fosun’s founder and chairman Guo Guangchang has previously said he is attempting to emulate legendary US investor Warren Buffett, by investing in insurance.

In its filing with the Hong Kong exchange, the company said the creation of Fosun United was “to generate synergies between the group’s resources in sectors such as insurance and healthcare through integration”.

Hetai is backed by Citic Guoan Group, a subsidiary of Citic Group and Yingkebicheng, itself a subsidiary of internet tech giant Tencent. Six others are also investing in a new life firm.