American International Assurance Company (Beijing) Limited will
start its operation in Beijing on June 7 and provide Beijing
residents insurance services in the second half of this year, Xu
Shuijun, person in charge of the said company, revealed the news to
reporters.
He
said the company has been granted with business license and will
begin operation on June 7. The overall cooperation with Beijing
Industrial and Commercial Bank this time will establish a solid
business network boosting the development of the company.
Though Xu didn't mention the concrete service items they will offer
for Beijing residents, it's said their services in Shanghai and
Shenzhen, such as "Chinese ivy" and "Evergreen plants" pension
insurance, insurance scheme for children's education fees and
medical cares have all achieved good results. Xu showed his
confidence in the rapid development of their company. It's expected
the number of its personnel will expand from several to two to
three thousand by the end of this year.
Domestic and foreign insurance companies are facing upgrading
competitions. China Insurance Regulatory Commission Chairman Wu
Xiaoping noted currently 34 foreign companies have been approved to
start business in China and other 112 ones scattered in 19
countries and regions have build up 199 offices in 14 cities.
Figures show foreign companies have experienced a rapid development
since they entered China's insurance market in 1992, generating
insurance revenue of 3.2 billion yuan in 2001. In Shanghai and
Guangzhou, their life insurance has accounted for 14.4 and 11.8
percent of the market respectively, the property insurance, 6.7 and
1.5 percent.
Experts indicated the entry of foreign companies is favorable for
residents since they can have more choices and be provided with
high quality services. However, for domestic companies, which are
inferior to foreign ones in services, the entry of foreign
companies means more fierce competition. With the opening of
markets, domestic companies are likely to suffer from a loss of
market share or short of personnel.
(
June 4, 2002)