Switch from country-based priority for issuing licences likely after WTO entry

The number of overseas insurers operating in the mainland is set to triple within five years and the number of businesses to rise to 50, from 14 today, according to Stuart Leckie, chairman of insurance and pension consultant Woodrow Milliman Asia.

Permission to enter the insurance business has been much sought-after by overseas businesses as their governments negotiate deals with Beijing, particularly over terms for accession to the World Trade Organisation.

However, although more licences will be issued, difficulties remain and overseas companies will still face problems recruiting good agents to run the businesses.

At least seven new licences will be issued to European firms as a result of an agreement between the European Union and the central government.

As of the end of this month, Beijing would issue new life-insurance licences to ING Insurance of Netherlands and Assicurazioni Generali of Italy, to allow them to set up life ventures, Mr Leckie said.

The other five new licence-holders had not yet been announced, but Mr Leckie said leading candidates would be Standard Life Assurance of Britain, Aegon of the Netherlands and CNP Assurance of France. Beijing would also probably grant general insurance licences to Allianz Group and Gerling, both of Germany.