By the end of the first quarter this year, 49 foreign insurance companies have established 132 headquarters and branches in China, said an official with China Insurance Regulatory Commission.

Foreign insurers now take nearly four percent of China's market shares, up 2.3 percentage points compared with that before China joined the World Trade Organization in 2001, said the official.

Shares in foreign capital-favored areas such as Beijing, Shanghai and Guangdong have reached 13 percent, 19 percent and 10 percent respectively, he added.

Commission sources said foreign insurance companies have chalked up 25.9 billion yuan (3.4 billion U.S. dollars) in premium earnings by the end of 2006 while they collected just 3.3 billion yuan (429 million U.S. dollars) in 2001.

The official said China's insurance industry is yet to be developed and Chinese companies lag behind their foreign counterparts.

He said the commission will continue to open up the market and encourage foreign insurers to take an active role in key realms including pension, healthcare, agriculture and liability insurance.

The official hoped more foreign companies will set up branches in the central and western regions. He also pledged the commission will strengthen supervision over insurers' paying ability, marketing behaviors and company management in a bid to safeguard China's financial security.

Source: Xinhua