China Insurance Regulatory Commission says the country is going to encourage more competition in its insurance market.

Head of the commission Wu Dingfu says China's insurance market is still in its infancy and has much room for growth. He reasons that Chinese insurance companies lack innovation as there is less pressure to survive in the industry.

He says the commission will offer preferential policies to new services in endowment insurance, medical insurance, liability insurance and special insurance for rural residents.

(CRI.com August 20, 2004)