Signing of the Economic Cooperation Framework Agreement (ECFA) between China and Taiwan on 29 June 2010 has had a sequel.
The China Insurance Regulatory Commission (CIRC) has selected Xiamen, capital of China’s Fujian province, as the pilot city to promote cooperation between the two countries’ insurance industries.
The ECFA is viewed as the most significant agreement between China and Taiwan since the two countries split after the Chinese Civil War in 1949
According to China’s official news agency Xinhua, cooperation between China and Taiwan will include motor insurance reform, developing annuity and old-age insurance products, encouraging commercial insurance businesses’ involvement in medical insurance, promoting development of the insurance intermediary sector, and insurance product innovation.
In September, financial services company Fubon Financial became the first Taiwanese company to be given the go ahead by the CIRC to establish an insurance business in China.
To be named Fubon Property & Casualty Insurance, the general insurance company is anticipated to commence operations at the end of 2010.
The new company, which will have an initial capital of some $60m, is based in Xiamen and is Fubon’s second venture into China.
In 2008, Fubon acquired a 20% stake in Xiamen Bank in 2008.