China to open up auto insurance market

BEIJING - During a meeting with US Vice-President Joe Biden on Tuesday, Chinese Vice-President Xi Jinping said China would open up the third party liability auto insurance market to foreign companies, a move industry experts said would help boost foreign non-life insurers' market share and improve local insurers' products and services.

According to Jackson Tang, CEO of Liberty Insurance Company Ltd, the opening-up of China's auto insurance market should be a win-win deal for both foreign and local insurers.

“The move will help to stimulate the business of foreign non-life insurers. For local non-life insurers, they could also benefit from the opening-up by learning about their foreign rivals' expertise in data processing, pricing and underwriting,” said Tang.