Huatai Insurance, China's fourth-largest property and casualty insurer, will become the first mainland firm to operate both general and life insurance divisions.
A Huatai executive confirmed yesterday that it had the go-ahead from the China Insurance Regulatory Commission (CIRC) to set up a life insurance joint venture. This will make it the first company to take advantage of a liberalised regulatory framework that previously barred general insurance companies from selling life insurance policies.
The executive told the South China Morning Post that the company might invite a foreign investor to participate in the planned life insurance venture but did not elaborate.
The company has solicited direct foreign investment before. Bermuda-based insurance giant ACE took a 22 per cent stake in May 2002 after receiving special permission from China.
Until last year, mainland property and casualty insurers were confined to providing car, property and boat insurance. Late last year, that list was expanded to include accident and health insurance, which were previously the domain of life insurers.
It is unclear whether Huatai will operate the life venture directly or invest in an existing operation.
