New U.S.-China Trade Deal May Affect Life Insurers
January 22, 2020 by Allison Bell
The new two-country trade agreement between the United States and China includes a provision that could help U.S. life insurers expand sales in China.
President Donald Trump signed the U.S.-China trade agreement at the White House Wednesday.
Article 4.6 in the agreement relates to insurance services.
Today, many U.S., European and Japanese life insurers see China as a growth market. China now requires foreign life and health insurers that want to enter the market to form joint ventures with Chinese companies. The Chinese company in a life or health insurance joint venture must own at least 49% of the joint venture.
The new agreement calls for China to eliminate the foreign equity cap in the life, pension and health insurance sectors, and to let insurance companies wholly owned by U.S. companies to participate in these sectors.
Click HERE to read the full story via ThinkAdvisor
