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Foreign Firms’ Strong Demand for Further Opening of China’s Life Insurance Market and Relevant Issues(No.96, 2016)


By Tian Hui, Research Team on “The Future Development of China’s Life Insurance Industry”, Research Institute of Finance, DRC

Research Report No.96, 2016 (Total 4979)2016-07-28

Abstract: Currently, foreign firms have a strong demand for further opening of China’s life insurance market, relating to market access requirements, sales and service channels, investment returns and improved regulations. By carefully analyzing their expectations, it is found that first, there are indeed some restrictions particularly against foreign insurance firms; second, the strongest demand from foreign capital is the shareholding ceiling of foreign life insurance companies, but the same kind of regulation on share ownership also exists in Chinese-funded insurance businesses, only manifested in different forms; third, some of the limitations imposed on certain foreign companies are facing all insurance companies, but the factual implementation time has imposed more restraints on foreign insurance firms; fourth, some of the requirements raised by foreign firms involve the reform of supportive mechanisms beyond the insurance sector. For future reforms, we should steadfastly deepen reform and opening-up of the insurance market and create a fair and neutral environment for competition. Besides, we should proactively respond to various demands put forward by foreign firms and try to meet their expectations.

Key words: life insurance companies, foreign investment, expectations