Foreign Insurance Companies in China

In May 2012, there were more than 50 foreign-funded insurance companies on the Chinese mainland, accounting for only 4% of the in life insurance market and 1% in property and casualty insurance market. For foreign insurers, they have entered the Chinese market through the formation of joint ventures with local companies.

According to a report from PricewaterhouseCoopers International (PwC) in 2011, the life insurance companies placed competition from domestic insurers as the greatest challenge, while China's tight regulatory environment was considered the top concern by property and casualty insurers. Besides, finding and keeping good personnel was cited a difficult aspect too.

After first introducing mandatory third-party liability insurance (MTPL) in 2006, the China Insurance Regulatory Commission (CIRC) resolved to open up the MTPL market to foreign insurers. This would create an exciting opportunity for foreign operators to expand their business into motor insurance. In October 2012, Liberty Insurance, one of the top American insurer, became the first foreign insurer in the Chinese MTPL market.