The China Insurance Regulatory Commission (CIRC) will begin
thorough investigations into the country's insurance companies this
month to promote the healthy growth of the fledgling insurance
market.
The three-year project is aimed at comprehensively examining the
practices in terms of legal compliance and internal control in the
insurance industry, said Zhang Xiangxian, a senior regulatory
official.
At the initial stage, five inspection teams will be organized to
examine 20 insurance companies.
Property insurance inspection will be focused on irrational
price competition of car insurance, life insurance, illegal fees
paid for agent business, and intermediary insurance on commercial
bribery.
On top of the regulator's agenda this year is the crackdown on
commercial bribery and illegal practices in the insurance industry,
said Wu Dingfu, chairman of the CIRC.
On the inspection list are China's largest non-life insurance
company, PICC Property and Casualty Company; China's largest
commercial insurance company, China Life Insurance Company; Ping An
of China and China Pacific Insurance Corporation, among others.
During the last two decades, China's insurance industry has
experienced a robust growth with revenue premiums annually
increasing at an average rate of 30 percent.
In 2005, the total amount of revenue premiums and insurance
assets reached 492.7 billion yuan (UA$59.36 billion) and 1522.59
billion yuan (US$183.4 billion) respectively, said Wu Yuming, Vice
President of CITI Group, on China Financial and Economic
News.
The country's insurance market is so large that local insurance
companies are strengthening their presence and many foreign
insurance companies are speeding up their pace to find a foothold
in China.
(Xinhua News Agency April 9, 2006)