According to Xinhua, citing Wu Dingfu, chairman of the China Insurance Reglatory Commission, China Postal Group is planning to establish an insurance company, which would become the country's first insurer with sole investment from the postal sector.
<p>Mr Dingfu also reportedly revealed that the company would be set up by the China Postal Group (CPG) with the support of its subsidiaries across the country. Once established, it would provide insurance services that deal with small amounts of money, similar to some Japanese insurers, where approximately 20,000 insurance companies are engaged in one-year life and medical cover and two-year property insurance. <br /><br />At present, China's postal sector has a network of 36,000 outlets nationwide, and acts only as the sales agent of insurance products, reported Xinhua. The news company also revealed that, at the end of March 2007, 14% of China's insurance agents came from the postal sector.<br /><br />Prior to this proposed move, the CPG had undergone a financial reform and established the China Postal Savings Bank, which became the country's fifth largest bank, with a total registered capital of CNY20 billion, Xinhua reported.</p>