A British firm soon will be permitted to enter China's potentially lucrative insurance market, Chancellor of the Exchequer Kenneth Clarke says.
The insurer would be given a licence to operate in select Chinese markets 'in the not-too-distant future', he said yesterday.
'Beyond that, I am not sure how wise it is for me to be more specific,' he said after talks with Finance Minister Liu Zhongli , and central bank governor Dai Xianglong .
In December, Winterthur Swiss Insurance Co became the first European insurer licensed to operate in Shanghai, with restrictions on sale of life policies.
American International Group and Tokio Marine and Fire Insurance Co have been licensed to operate in select mainland markets since 1992, while Canada's Manufacturers Life entered an agreement in May last year to launch the mainland's first joint life insurance venture with China National Chemical Import & Export Corp.
'We think we could make a contribution in the fields of insurance and more sophisticated savings vehicles like mutual bonds,' Mr Clarke said.