Chubb welcomes US China trade agreement
The signing of the Phase One trade agreement between the United States and China has been welcomed by global P&C insurance company Chubb.
"Chubb welcomes and supports the successful completion of the Phase One trade agreement between the United States and China,” the company said in a statement. “We congratulate the governments of both nations for achieving this important confidence-building step. We urge the US and China to expeditiously move to the important Phase Two negotiations, taking into account the interests of both countries while reconciling important differences. At Chubb, we have confidence in the long-term potential of the Chinese insurance market, and this agreement should expand market access for American business in financial services, including insurance."
The agreement will give US insurance companies improved access to China’s financial services market, addressing a number of longstanding US complaints about the sector’s investment barriers. These include discriminatory regulatory requirements and limitations on foreign equity.
The agreement states that no later than April 1, 2020, China shall remove the foreign equity cap in the life, pension, and health insurance sectors and allow wholly US-owned insurance companies to participate in these sectors.
“China affirms that there are no restrictions on the ability of US-owned insurance companies established in China to wholly own insurance asset management companies in China,” the agreement states.
It also states: “No later than April 1, 2020, China shall remove any business scope limitations, discriminatory regulatory processes and requirements, and overly burdensome licensing and operating requirements for all insurance sectors (including insurance intermediation), and shall thereafter review and approve expeditiously any application by US financial services suppliers for licenses to supply insurance services. In accordance with this commitment, China affirms that it has eliminated the requirement of thirty-years of insurance business operations for establishment of new foreign insurance companies.”
