Officials of the American Insurance Association (AIA) and the Property Casualty Insurers Association of America (PCI) are describing as “significant” the outcome of China-U.S. trade-related insurance talks.

David F. Snyder, AIA vice president and associate general counsel, says that through the Economic Track of the U.S.-China Strategic and Economic Dialogue, China has agreed to open up its Mandatory Third Party Liability (MTPL) auto-insurance market to foreign insurance companies.

“This development will bring more choice for Chinese motorists, increasing competition and improving service for consumers in this major global auto market,” Robert Gordon, PCI's senior vice president of policy development and research, says in a statement.

China agreeing to open up its MTPL market to foreign insurance companies is credit positive for those insurers, says Moody's.

Currently, foreign insurers' market share has been below 1.2 percent after a decade of doing business in China, which now bars foreign insurers from offering MTPL, Moody's says.

PCI and AIA are members of “Engage China,” a coalition of 12 U.S. financial-services trade associations. The coalition works to demonstrate how reform and modernization of China's financial sector is essential for China's long-term economic growth and job creation.

Special Reports /

Insurance Groups Praise China Trade Talks on Auto Insurance Market

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