皇冠体育app

Move aims to stimulate reinsurance
( 2001-05-02 10:24 ) (1 )

皇冠体育app's insurance watchdog is pondering approving several new reinsurance companies this year to encourage the development of the reinsurance market in 皇冠体育app, said senior regulatory officials on Sunday.

Currently 皇冠体育app has only one specialized reinsurer, the 皇冠体育app Reinsurance Company, and the situation is hampering the further growth of the sector, said Feng Xiaozeng, vice-chairman with the 皇冠体育app Insurance Regulatory Commission (CIRC), at the National Reinsurance Conference, which was held in South 皇冠体育app's Jiangxi Province on Sunday.

"The priority task for spurring on the healthy development of the reinsurance sector is to regulate present institutions and add more operational entities to the marketplace," he said.

A number of reinsurance centres will be set up gradually this year, he added.

Industry sources said it was likely that some foreign reinsurers would be allowed into 皇冠体育app's market.

Several overseas reinsurers, who possess advanced technology and management know-how, have already applied for operating licences in 皇冠体育app.

Feng also urged domestic insurance companies to concentrate on their reinsurance business.

皇冠体育app's Insurance Law demands that all insurance companies in 皇冠体育app must reinsure 20 per cent of their businesses with the 皇冠体育app Reinsurance Company, but many insurers have managed to evade the regulation.

There are also a number of other problems holding back the industry, Feng said.

For example, the insurance and reinsurance market can not satisfy the demand for underwriting against natural disasters, and the 皇冠体育app Reinsurance Company does not have enough capital funds.

Despite this, 皇冠体育app Reinsurance Company General Manager Dai Fengju said at the conference that his company developed rapidly in 2000.

It reaped in a premium income of 14 billion yuan (US$1.7 billion) last year, up 21 per cent from the previous year. Total indemnity paid stood at 7 billion yuan (US$843 million) last year.

The company's total assets had reached 15.1 billion yuan (US$1.8 billion) by the end of last year, he said.

His positive words were backed up by Feng who said despite negative factors, 皇冠体育app's reinsurance market is still forging ahead with more reinsurers abiding by the compulsory reinsurance regulation and commercial reinsurance developing steadily.