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| Insurance reform takes hold with PICC split |
| CCTV.COM 2003-07-19 15:07:50 |
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As part of an industry restructuring plan, the People's Insurance Company of China （PICC）, was this morning transformed into the PICC Holding Company. After the successful switching of China's largest state－owned insurance firm, another two companies are expected to realize the goal by the end of this year.
The People's Insurance Company of China has set up two new companies, namely, the PICC Asset Management Co. Ltd and the PICC Property and Casualty Co. Ltd.
Earlier this year, the PICC disclosed that the central government approved its reform scheme to split the country's largest non－life insurer into a holding company and a joint－stock property insurance firm.
The launching of the PICC Holding Co. this morning marked the breakthrough in the restructuring of the nation's insurance sector.
Wu Dingfu, chairman of China Insurance Regulatory Commission, said, "The reform of China's state－run insurance companies is one of our most important tasks for 2003. After the reform, the management system will witness a dramatic change and their competitive edge will be sharpened, which will improve the insurance sector's development in China."
PICC was founded in 1949. As China's first large state－owned insurance company, after its transformation, insurers are believed to be close to their long－planned goal to be in both the domestic and overseas markets. However, the leadership of the newly established company still puts much emphasis on the fundamental rule of providing high－quality service.
Tang Yunxiang, president of PICC Holding Co. Ltd., said, "The insurance sector's fierce competition boils down to the service itself. We will demonstrate our capability and highlight our brand by providing high－quality services to sharpen our competitive edge, this is the most important thing."
Analysts say that such move will help end today's low－level, primitive competition and make the insurance industry keep pace with international companies. Following the successful transformation of PICC, China Life and China Reinsurance companies, the other two of the industry's big names are also expected to restructure by the end of this year.
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Editor: Yang Feiyang CCTV.com
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