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Regulator: Insurers may suffer more from recession

By Hu Yuanyuan (Chinadaily.com.cn)
Updated: 2008-12-27 11:21

China's insurance industry will feel the pinch of the global economic recession in the following two to three years, Wu Dingfu, chairman of the China Insurance Regulatory Commission said today.

"We should be particular alert to cross-board risks transfer," Wu said at the annual insurance conference.

So far, 120 foreign insurance institutions have had presence in China's mainland. And there are 46 foreign-funded and joint venture insurers in the country, with some of them facing growing pressure in 2009 as their foreign stakeholders are badly hurt in this global financial tsunami.

"Meanwhile, the global financial turmoil also makes insurers' overseas investment even more difficult, with fewer investment choices and growing risks," Wu added.