3. The supervision system in the insurance industry

An insurance supervisory system has been set up with a supervisory organization system and supervision system as its basis. Establishing the framework included the following steps: insurance supervisory organization systems have been preliminarily set up all over the country; to date the China Insurance Regulatory Commission has set up (with the exception of Lhasa, Tibet Autonomous Region) 31 insurance supervisory offices in 30 provincial capitals and Shenzhen city.

The second step is to further consummate insurance laws and regulations: 44 administrative regulations and normative documents, like Management Regulations for Insurance Companies, have been issued.

The insurance supervisory management index system has been set up following considerable research.

Furthermore, branch coverage areas have been widened. Large-scale commercial insurance services and insurance "Master Policy" services have been allowed to operate across different areas.

Finally, efforts have been strengthened in investigating and prosecuting unlawful practices.

4. Staff salary conditions

In total, there were 264,000 people in the insurance industry in 1999 with an average annual salary of about 12,033 yuan.

In 2002, the total revenue of the insurance premium was 305.3 billion yuan -- an increase of 44.3 percent over the previous year. In total, about 195.7 billion yuan came from life insurance and 31.8 billion yuan from health insurance and accident injury insurance, and 77.8 billion yuan from property insurance. The paid insurance proceeds and indemnity amounted to 70.7 billion yuan, with a total 22.5 billion yuan in life insurance; health, property and accident insurance totaled 5 billion yuan and 43.2 billion yuan respectively.
(US1=8.27 yuan)

[Source:2001 Yearbook of China's Insurance]

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