China Approves More Insurance Brokers

One study sees China becoming the third biggest insurance sector globally by the year 2020.

Guy Carpenter & Co. LLC and Willis China are two of the latest international insurance brokers setting up new branches in China, according to a recent report by A.M. Best.

Global reinsurance broker Guy Carpenter received approval to open a new branch in Shanghai, while Willis Group received permission to open a new office in Harbin -- the first foreign broker with a presence in Northeast China, according to the report.

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A.M. Best reported that, as of the first quarter of 2012, China had a total of 2,553 insurance intermediaries, according to the China Insurance Regulatory Commission.

Among the total, 43 were national insurance agencies and 1,772 were regional agencies, with 421 insurance brokers and 317 insurance adjusters.

Advisen, a research organization focused on the insurance industry, reported that the China Center for Insurance and Social Security Research at Peking University predicted the Chinese insurance industry will record growth of 12.9 percent from 2010 to 2020.

"By 2020, China is likely to take 8.7 percent of the worldwide insurance market, becoming the third biggest insurance sector globally," according to the report.

--By Anne Freedman

December 17, 2012

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