JARDINE CMG Life is close to teaming up with a general insurer, highlighting the need for insurance companies to form strategic alliances to provide a wider range of financial services to customers. ''It is a way to protect and keep our 50,000 policy-holders,'' said managing director Patrick Amos. He said the alliance would be announced in two to three weeks. Examples of life insurance companies joining with general insurers abound. Last year, Manulife allied with Taikoo Royal Insurance. This year, New York Life and the Netherlands Insurance made similar moves. ''It is the one-stop shop idea of gradually providing all financial services to customers,'' Mr Amos said. Jardine CMG is jointly owned by Jardine Pacific, the trading and services arm of the Jardine Matheson Group, and Australian-based Colonial Mutual Group (CMG), an international life assurance company. ''Over the next 20 years, China will become a major force in the creation of individual savings, as a strong middle-class emerges with increasing income levels,'' said Peter Smedley, managing director of CMG. Because the Chinese Government's policy stipulates a 36-month waiting period for foreigners to get an operating licence, Mr Smedley said the company would conduct market and product research in this period. ''We are also looking for potential partners in China,'' he said. Established in 1986, Jardine CMG commands a total income of $15 billion. The company provides individual and corporate clients with a variety of individual life insurance plans, group life insurance, personal accident and group medical insurance. The company is still making a loss in life assurance. However, last year's loss of about $5 million was offset by handsome gains in investment income. ''We expect to break even this year and make a profit in 1995,'' Mr Amos said.