Foreign companies gain further access to insurance market - China Cavitation Body Slimming

Foreign insurers have finally been given the green light to enterChina's compulsory transport accident insurance market, accordingto a government ruling effective from yesterday, a move signalingthe nation's full opening-up of its insurance industry. Starting from yesterday, any insurer gaining approval from theChina Insurance Regulatory Commission (CIRC), the nation'sinsurance watchdog, will be eligible to engage in the compulsorytransport accident insurance business, which was previously openonly to Chinese insurers, according to an amended regulationpromulgated by the State Council Monday. The final announcement came after China had declared itsdetermination to free up its compulsory transport accidentinsurance sector to foreign insurers in February, during ChineseVice President Xi Jinping's visit to the US. Although the move is likely to intensify market competition,experts noted yesterday there is unlikely to be any big change inthe market structure in the near term. Diode Laser Hair Removal Machine

"Foreign insurers, who were only allowed to sell commercialauto insurance products before, would certainly be interested ingetting involved in the compulsory business, as few car ownerswould bother to buy the two types of products separately," LuoQi, an industry analyst with Pingan Securities based in Shenzhen,told the Global Times yesterday. The move should also help foreign insurers gain a bigger footholdin the country's huge auto insurance market, which accounts forroughly 70 percent of the nation's property and casualty insurancemarket in terms of premiums, Luo said. However, "any big expansion in the short term would beunrealistic for foreign insurers, as they remain weak in competingwith their Chinese rivals in terms of sales network and after-salescapacities," Luo noted. "The compulsory auto insurance business, which has long beenmired in the red, would also be a challenge for foreigninsurers," Hao Yansu, dean of the School of Insurance of theBeijing-based Central University of Finance and Economics, told theGlobal Times yesterday. The Chinese government has kept tight controls on pricing in thecompulsory transport accident insurance market since the compulsoryinsurance policies were introduced in 2006. China Cavitation Body Slimming

As a result, Chineseinsurers have been reporting losses in the sector for years, amidrising costs. There are currently 21 foreign firms operating in the country'sproperty and casualty insurance market, recording premiums totaling5.2 billion yuan ($826.41 million) in 2011, equivalent to only 1.1percent of the combined premiums of the 38 Chinese firms in themarket, according to data from the CIRC. IPL Beauty Machine Manufacturer