The plan to set up county level insurance firms has commenced, as there were no such insurance companies in China earlier
The Guangdong bureau of the China Insurance Regulatory Commission (CIRC) is seeking to establish insurance companies at Xiaolan county of Zhongshan city, Guangdong province in China – reported China Daily.
Reportedly, the plan of setting up county level insurance firms has commenced, as there were no such insurance companies in China before.
Since the premium income was plunging rapidly by the end of March, the CIRC Guangdong bureau had started probing about the impact of the financial crunch upon the insurance industry in Zhongshan, which led the idea of setting up county insurance.
As per the official statistics, by the end of June, Zhongshan’s premium income totalled Yuan3.04 billion ($444.76 million), down 10.89% from the same period last year. Compensation and other expenses were up 9.23% year on year.
An investigation in Xiaolan county discovered that not only were the premiums dropping but export credit insurance were also affected by the crisis. As a result, the local officials then suggested to the CIRC Guangdong bureau to establish county-level insurance companies.
Eight commercial banks, 19 insurance companies and two securities companies have set up outlets in Xiaolan county, quoted the Daily.