China Life allowed to move into Beijing

China Life Insurance Co (中國人壽), the eighth-largest life insurance firm of the 28 operating in Taiwan, said it has received permission from China's financial authorities to open a representative office in Beijing, according to a filing made to the Taiwan Stock Exchange on Tuesday night.

A representative office can't sell policies, but will allow the insurer to collect information and conduct market surveys to better understand the market in China.

The statement didn't say when China Life plans to open the office. The insurer has to run the office for two years, the minimum time required to apply for a license to open a branch.

China Life, owned by the family of Jeffrey Koo Sr. (辜濂松), reportedly submitted an application to Beijing's China Insurance Regulatory Commission earlier this year to operate a representative office.

Thus far, Taiwanese insurers such as Cathay Life Insurance Co (國泰人壽), Shin Kong Life Insurance Co (新光人壽), Taiwan Life Insurance Co (台灣人壽) and Fubon Life Assurance Co (富邦人壽) have opened representative offices in China, a market that grew 13.4 percent in the first half of the year to 180 billion yuan (US$22 billion) from a year earlier, according to the China Insurance Regulatory Commission.

Penetration of life-insurance policies was 11 percent in Taiwan last year, compared with less than 2.5 percent in China, according to Swiss Reinsurance Co.