Marsh today announced it has been awarded China's first ever
Wholly-Owned Foreign Enterprise (WOFE) insurance broking license. The
new license provisions, subject to tax and regulatory approvals, are
in-line with China's World Trade Organisation commitments to open its
insurance industry to foreign investment.
Under terms of the new licensing agreement, Marsh's existing risk
consulting business will have its scope expanded in China to include
brokerage for insurance of large scale commercial risk, brokerage for
reinsurance, brokerage for international marine, aviation, and
transport insurance. The firm will operate in China as Marsh (Beijing)
Insurance Brokers Co. Ltd.
"We are very grateful to the Chinese insurance regulator, China
Insurance Regulatory Commission, for awarding Marsh the first WOFE
insurance broking license in China," said Marsh Chairman and CEO,
Brian Storms. "In turn, we will continue to use all of our global
resources to support the development of a Chinese market that Marsh
considers to be one of its most important globally."
The granting of a WOFE license to Marsh represents a significant
development for foreign entities operating in China's insurance
market. Marsh's Asia Pacific CEO, David Batchelor, says the company is
excited to grow its operations and capabilities in China under the
expanded terms of its new licensing agreement.
"Marsh has been in China for 25 years - first as a representative
office, then as insurance and risk management consultants - and has
devoted a great deal of time to building an understanding of the risk
and insurance issues of Chinese and foreign multi-national
businesses," Batchelor said. "Receiving this new licence means Marsh's
clients in China now have access an unparalleled range of services
being delivered through our firm's global network of risk and
insurance specialists - an unmatched proposition anywhere in the
world."
Marsh CEO of Greater China Region, Paul Wilkins, based in Beijing,
said Marsh has an ever-increasing portfolio of global clients who are
active and expanding in China, or looking at entering the market.
"The China Insurance Regulatory Commission has been driving an
increased awareness of risk management among Chinese businesses," said
Wilkins. "Within China we have been supporting this activity,
particularly in major risk and insurance management sectors like
aviation, space, marine and energy, and financial institutions. We are
delighted with the prospect of providing new product opportunities to
enrich the expanding Chinese market."
Marsh has previously provided risk management and insurance
broking services from three offices in China - Beijing, Shanghai, and
Guangzhou. The firm has communicated future expansion plans into
Chengdu, Western China, subject to CIRC approval.
"We have seen an increasing demand for more sophisticated risk and
insurance solutions from local Chinese companies, and we are well
prepared to support them, both in China and as they go global," said
Wilkins.
"We see great interest in areas such as Directors' & Officers'
liability, environmental issues, pandemic preparedness and product
liability. We are actively recruiting and training colleagues in China
to support our clients' growth and our firm's expansion of services."
About Marsh:
Marsh, the world's leading risk and insurance services firm, has
26,000 employees and annual revenues approaching US$5 billion. The
firm provides advice and transactional capabilities to clients in over
100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a
global professional services firm with approximately 55,000 employees
and approximately US$12 billion of annual revenues. MMC also is the
parent company of Guy Carpenter, Kroll, Putnam Investments, and
Mercer. MMC's stock (ticker symbol: MMC) is listed on the New York,
Chicago, Pacific, and London stock exchanges. MMC's Web Site is
www.mmc.com. Marsh's Web site is www.marsh.com, and in China
www.marsh.com.cn.
