They believe as the penetration rate of 2

After to be concentrated on the reform of the banking system, the Chinese authorities focus for a few months on the development of their insurance groups, judged too immature to respond to the challenges posed by China's growth.

The weakness of the social security system, the scarcity of structured pension funds, the accelerated ageing of the population, the absence of developed financial markets and the explosion of traffic have pushed Beijing to strengthen the legal environment and the capabilities of investment of the insurers, who have already collected more than 61 billion in premiums. "The market was in its infancy", note Benfield analysts in their recent report on the Chinese insurance. They believe as the penetration rate of 2.7 (report of the volume of premiums collected on GDP) and expenditures per capita capping to 46 dollars (against 3.747 $ for the Japan) leave hope "substantial growth" in the years to come. The IARC, the Chinese regulator of the sector, the insurance revenues should double by 2010 to exceed 1,000 billion yuan (125 billion dollars).

Always dominating 80 of the domestic market of life insurance, the three giants, China Life, Ping An and China Pacific Life Insurance, and the leader of the insurance not life, CCIP, urge the Government to release their activities to meet the demandecroissante of a population saving mass (1,700 billion) since the scarcity of public aid and the end of the support of care and pensions by State enterprises for many years. Promising returns of 3 or 4, they faced the insufficient profitability of their capital, still concentrated in bank deposits paid at 2.5 and Government bonds. At the time, since early 2006, Beijing authorizes them to place their funds in commercial banks and national brokers.

Released last week, new rules specify that these investments will have to be reserved for even non-listed State-owned banks and that each insurer will take is to invest "in a major way" (more than 5 of the assets of a Bank) in only two establishments both. Without waiting for the publication of these rules, pine year has already taken control of 89 of Shenzhen Commercial Bank when China Life purchased 1.75 of Industrial Bank.

To develop the hopes of the sector, the Government also plans to raise, by late 2006, the ceiling of the investments on the stock exchanges in the country and should give its first green lights for investments abroad. New opportunities which should also benefit foreign insurers who arrived en masse in the country.

Labour shortages

End of 2005, 41 foreign groups working in the sector in China but not controlled, nationwide, only 2 of the life insurance market and less than 1 of the non-life insurance market. Concentrated in the richest cities such as Beijing, Shanghai, Dalian, or Canton, where market share sometimes reached 15, they focus on products and the most sophisticated clients. If the bulk of trade barriers was gradually lifted since the accession of China to the WTO in 2001, AXA, Prudential, AIG, Generali and other Allianz struggle always to expand their operations. They still have to travel long administrative paths to obtain licences for the launch of their services in new towns and wear in the recruitment of a staff qualified, rare and financially very demanding. For foreign experts, this shortage of labour would even become today the main brake to their development.