Chinese Companies Conclude Bancassurance Pact

Taking notes from their Western peers, the Industrial and Commercial Bank of China and the Huatai Insurance Company have signed a cooperation agreement to begin providing services which are remarkably similar to the “bancassurance” operations, that dominate the market for personal lines in many European countries.

“ICBC will collect premiums and pay out claims on behalf of Huatai and the two sides will also co-operate in Internet settlements, deposits and other fields,” said a bulletin from China’s Xinhua News Agency.

ICBC already has similar agreements with two other Chinese insurers, and plans to use the strategy to improve operating performance and expand its business.