Foreigners Encouraged to Set up Insurance Sale, Agency Firms

China Insurance Regulatory Commission on October 21, 2010 issued a Notice on Reform and Optimizing of Insurance Salespersons Management System, encouraging foreign investors to set up large-sized insurance agencies and insurance sales companies in China.

According to the notice, the regulator encourages insurance firms and insurance intermediaries to make the insurance sale system to be professional and occupational, and urge insurance firms to strengthen the cooperation with insurance agencies to set up a stable exclusive agency relationship and an outsourcing mode of sales. Meanwhile, the regulator encourages various types of investors, including foreign investors, to set up large-sized insurance agency firms and insurance sale firms to continue the current mode through establishing new-type insurance sales system.

The reform is expected to affect the big insurance marketing team consisting of more than 3 million people, which is required to be boosted by steps on the premise of maintaining existing marketing teams basically stable.