A recent keynote speech from President Xi Jinping pointed out that its economy would be opening up into the future.
Chinese President Xi Jinping gave a keynote speech at the APEC CEO summit, in which it was revealed that the insurance industry – and other parts of the country’s economy – would soon be welcoming a greater amount of foreign investment moving ahead.
The country will be opening up its doors to the rest of the world to a larger degree and limits will be reduced.
According to Xi, when discussing the Chinese economy and insurance industry at the Manila summit, “China remains committed to providing better services for foreign investors and will always keep its door to the outside world open.” Xi also said that the limitations that are currently in place for foreign investors will be decreased.
The insurance industry in China is already among the leaders in the country when it comes to foreign investment.
At the moment, investors from insurance companies based in other countries are already receiving nearly the same treatment as their domestic counterparts. Among the first insurance companies from outside China to step into that economy was Ergo Life Insurance from Australia. Its general manager, Yin Xiaosong, explained that “We are now almost enjoying the same kind of treatment compared with local insurance companies, especially in areas like life insurance and property insurance. And also in terms of business coverage, regions and product lines, the differences are getting smaller.”
In 2012, foreign insurance companies were able to move into the auto coverage sector with full access. This was the first time this type of step had been taken since 2001, when China first joined the World Trade Organization.
From that time, there have been many considerable movements in the Chinese insurance industry. There are now an estimated 56 foreign insurers in China, based in 16 different countries. It is expected that this number will only continue to grow. Profits among insurers in China have skyrocketed by an estimated 95 percent this year, compared to last year, based on the figures from the first three quarters of this fiscal year.