China's insurance industry posted premium earnings of 492.84 billion yuan (US$61.6 billion) in 2005, ranking 11th in the world, said 2005 Annual Report on China's Insurance Market published by China Insurance Regulatory Commission (CIRC) on Thursday.

 

The country's insurance industry's penetration rate shows the ratio of insurance premium earnings to gross domestic product rising to 2.7 percent in 2005 from 1.8 percent in 2000 and insurance premiums per capita, doubling, said the report.

 

The country's premium earnings ranked 16th in the world in 2000.

 

The report said the opening of the country's financial market will help the reform and development of its financial industry, but it will also put financial institutions under great pressure as fiercer competition will lead to increasing mergers and acquisitions in the financial industry.

 

There is a merging trend of companies combining monetary, securities and insurance services.

 

This is the first time the CIRC has compiled an annual report on the insurance market.

 

(Xinhua News Agency September 8, 2006)