CHINA POSTAL TO SET UP INSURANCE COMPANY

China could see its first insurer to emerge from the postal sector, according to a report from the regulatory commission (CIRC). Wu Dingfu, chairman of the CIRC, has stated that China Postal Group has submitted an application to establish an insurance company. The move would mirror what is common practice in neighbouring Japan, where a number of companies outside the traditional financial services market are able to offer limited insurance services, such as one or two year life or property insurance policies. Currently China’s postal service uses its 36,000 outlets to act as insurance agents, accounting for 14% of the country’s sales force, and is keen to increase its involvement in the insurance industry. The application to the CIRC follows an earlier move in setting up the China Postal Savings Bank which now holds a total registered capital of 20bn yuan, making it the country’s fifth biggest bank.