BEIJING, June 19: Pakistani insurance companies have been asked to contact China Insurance Regulatory Commission (CIRC) if they intend to set up their business in the Chinese market.

The companies may send their relevant documents to the commission, as a first step for undertaking the business in the growing Chinese market.

After reviewing the documents, the companies to be declared eligible will be sent application forms to formally apply, seeking approval to set up their branches, joint ventures, or wholly owned companies, a senior official of the CIRC told APP here on Wednesday.

This process may take two to three years, and the companies would be required to make themselves familiar to the relevant Chinese laws and regulations. It is also important that the relevant officers also learn the Chinese language, the sources added.

The companies may send their letters of intent to Yuan Li, deputy director general, CIRC, No. 410, Fu Cheng Men Nei Dajie, Xicheng District, and Beijing (Ph: 0086-10-66015994, Fax: 66011873). The web site of IRC is: www.circ.gov.cn

China after entry into WTO, allowed the foreign companies to set up their business in China, making their business wider to the outside world.

Pakistani insurance companies of national and international repute could come forward to take benefit of growing prospects in the Chinese market, the sources added.

The insurance businesses that have been permitted include — property insurance services, including property damage insurance, liability insurance, credit insurance and other insurance businesses.

The foreigners can also engage in life insurance business, including life insurance, health insurance, accidental injury insurance and other insurance businesses.

According to the new rule, a foreign insurance company applying to establish a foreign-funded insurance company must have engaged in the business for more than 30 years.

The new regulations also allow applicants to complete the process within one year of the receipt of the official application form. “The requirement for an overseas insurer’s mainland branch to have a minimum registered capital of $24m or the equivalent of a fully convertible currency.

The insurance business in China is growing fast. Only in Shanghai, the 14 foreign-funded insurance companies contribute 13.6 per cent to the city’s $2.2 billion premium income last year.

Currently, 34 overseas companies are licensed to operate in China. Together, they collected some $400 million in premiums last year.

According to the sources, China’s entry into WTO provides excellent opportunities to Pakistani businessmen to set up their business in the Chinese market. They suggested that maximum number of Pakistani businessmen should visit China to explore the emerging opportunities.

Besides other major cities, Beijing has opened its retail and wholesale business, allowing the private sector to open restaurants, chain stores, jewellery shops and boutique houses, said Lu Yan, a senior official of the Beijing Municipal Commercial Committee.—APP