China likely to open auto insurance to foreign firms

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TAIPEISHANGHAI, Nov 16 (Reuters): China, the world's largest auto market, is likely to open its mandatory auto insurance market to foreign companies next year, chairman of the Insurance Association of China said Wednesday. The 200 billion yuan ($31.5 billion) auto insurance market is dominated by Chinese insurers such as PICC Property and Casualty Co and Ping An Insurance, but regulators aim to introduce more competition. "Foreign firms can only sell commercial auto insurance now. We want to make it possible for them to do both commercial and mandatory auto insurance," Jin Jianqiang told Reuters on the sidelines of a business event in Taipei. "We see a good chance to open the market next year to foreign companies, including those from Taiwan." Giving foreign companies access to the mandatory auto insurance market may help foreign insurers compete more effectively with Chinese rivals in selling commercial auto policies as car-owners tend to buy both products in one shop.