|
BIZCHINA / Top Biz News |
79 companies quit insurance intermediary market in 1st half(Xinhua)
Updated: 2007-08-03 15:10 A total of 79 insurance intermediaries were forced out of the market for poor management or violation of rules in the first half of this year, according to the China Insurance Regulatory Commission (CIRC). The list of failures comprised 64 insurance agencies, five brokerage companies and ten adjusting firms. Market forces were wiping out companies that failed to withstand the fierce competition, and would boost the healthy development of the market, CIRC officials said. The insurance intermediary market experienced a boom after market access requirements were lowered in 2003. The intermediary sector was not performing well due to a lack of expertise and weak recognition among clients, and it contributed only 4.1 percent of the nation's total insurance premiums, compared with an average 70 percent in developed countries. The sector finally managed to make a combined profit of 99.36 million yuan last year after several years of losses, on the strong performance of insurance brokerage companies and adjusting firms. Among the intermediaries forced out in the first half, more than 80 percent were insurance agencies, which suffered losses totaling 23.61 million yuan in 2006, the commission said. Analysts said it was good to see some of the unqualified companies wiped out after the commission intensified supervision over the insurance intermediary market. The withdrawal of these firms would have little impact on policy holders because they could easily turn to more qualified intermediaries, they said. By the end of June, the insurance intermediaries registered in China totaled 2,256, according to the CIRC statistics. |
|