The continued introduction of foreign insurers poses no threat to China's insurers and will not harm the insurance market, said Wu Dingfu, chairman of the China Insurance Regulatory Commission (CIRC).

Wu said, "We have withstood the test of opening the sector to foreign businesses and have safeguarded the security of the country's insurance markets".

China has 41 foreign insurers which have gained a 6.7 percent market share. Of the 46 insurers listed in the top 500 companies of Fortune magazine, 27 have set up operations in China.

Foreign insurers are allowed to provide insurance services in any region of China and can do any type of business except those involving compulsory insurance programs.

Wu noted foreign players are pushing forward the development of the country's insurance industry as they have what Chinese insurance market most needs such as advanced operation procedures and and management.

"We will make efforts to encourage foreign players to operate in our weak areas such as agriculture insurance, pension and health insurance", Wu said.

A circular titled Ten Suggestions on the Reform and Development of the Insurance Industry issued by China's State Council, or the cabinet, said China will deepen the industry's reform, improve corporate governance, enhance the quality and standards of foreign competition and improve the industry's competitiveness.

Source: Xinhua