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China to see insurance premiums double in 2010

(Xinhua)
Updated: 2006-10-16 09:25

China will see its insurance premiums double to one trillion yuan (125 billion U.S. dollars) by 2010, driven by people's growing demand and constant product innovation, said the state insurance watchdog.

During the 2006-2010 period, as Chinese people spend more money on cars, houses, education and travel, insurance demand will grow, according to a document released by the China Insurance Regulatory Commission (CIRC).

With a 1.3 billion population and an ageing society, China will see insurance play greater role on the improvement of social services during this period, particularly on the medical service and pension, said document.

According to the commission, China vows to create a healthy environment for the development of the insurance industry before 2010, with improved legal system and people's enhanced awareness towards insurance.

The commission urges insurance companies to explore markets, introduce more product varieties and improve risk-control system.

By 2010, China plans to build a modern insurance industry with a batch of large insurance companies with international competitiveness, said the plan.

China's insurance premiums hit 493 billion yuan (62 billion U.S. dollars) in 2005, ranking the 11th in the world. The industry witnessed a  25 percent annual increase from 2000 to 2005, the CIRC statistics showed.