CIRC CHAIRMAN REMAINS BULLISH ON CHINESE INSURANCE

The Chinese insurance industry has survived the world economic downturn well, according to Wu Dingfu, chairman of the China Insurance Regulatory Commission (CIRC). Speaking at a recent national insurance work conference in Beijing, Mr Wu said that the insurance industry had maintained “a relatively good development momentum”. By the end of November insurance premiums in China had reached CNY951.05bn ($133.8bn), up 42% year on year. This compared with a growth rate of 24.4% at the same time last year. Non-life premiums were up 17.5% to CNY215.9bn, while life premiums rose 51.8% for the first 11 months to CNY699.1bn. However, investment profit collapsed, down two-thirds to CNY93bn. Mr Wu said that “the total premium income of China’s insurance industry is expected to reach CNY1trn in 2008”. Payouts were CNY267.5bn, up 32.7% year on year. Meanwhile, Mr Wu said that China would launch a trial that would permit insurers to invest in financial companies and selected businesses of “good quality”.