Insurance and Its Supervision

China's insurance sector is recovered in 1980 after 20 years of suspension. In 1981, The People's Insurance Company of China has changed from a government department to a professional firm. It also sets up a national network with a general headquarter, and branches in all provinces, autonomous regions, municipalities and counties. In 1988, Ping An Insurance Company and China Pacific Insurance Group are established for business in coastal areas. In 1996, the People's Insurance Company of China has achieved great progress in its managerial and operation mechanism, its modern enterprise system and its international market entry. With the issuing of Law of Insurance in 1985 and the establishment of China's Insurance Regulatory Commission in 1988, China's insurance market has gained legal protection under laws and regulations.

At present, China has over 70,000 insurance companies and agencies, providing a wide range of insurance categories like life, medical, accident and casualty, property insurances. Besides, over 30 foreign insurance institutes have been approved to open their business in China. Over 100 foreign insurance companies have set up 200 regional offices in China, waiting for permission to become legal operators in the country. In 2003, the total insurance revenue from the domestic and foreign insurance companies in China is RMB388 billion ($47.3 billion), increased by 27.1% over last year.