ERC Seeks Chinese Operating License
NU Online News Service, May 30, 12:33 p.m. EST?Employers Reinsurance Corp., expanding its activities in China, said it has formally applied to authorities there for a full property-casualty insurance operating license.
The decision by the China Insurance Regulatory Commission on the application is expected in 18 to 24 months, said ERC, a General Electric Corp. company based in Overland Park, Kan.
"Given our cooperative experience with Chinese insurers, our financial strength and our underwriting experience, we strongly believe that ERC will be a successful contribution to the development and growth of China's insurance sector," said Ron Pressman, chairman, president and chief executive officer of ERC.
ERC said it has been developing relationships with and providing services to several Chinese insurers since 1976.
ERC opened representative offices in Beijing in 1996 and in Shanghai in 1998, which provided limited reinsurance services to and underwriting expertise with the Chinese market, the company said.
ERC also said it would like to establish a branch office either in Beijing or Shanghai. The office would provide p-c reinsurance services throughout mainland China, the company said.
"Our goals are to develop cooperative programs to share our underwriting and industry expertise with leading Chinese insurance companies," said Grant Robson, president and CEO of ERC's Asia Pacific p-c operations.
He added that ERC plans to allow China's insurance industry leaders and professionals access to and participation in ERC's professional and management development programs.
ERC said that before obtaining approval for full operating license in China, a foreign company must have 30 years of experience as an insurer, $5 billion in total assets and a representative office in China for two years.
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