Marsh insurance brokerage said it received China's first ever Wholly-Owned Foreign Enterprise (WOFE) insurance broking license, allowing the firm to expand beyond its role as a consultant.
The new license provisions, subject to tax and regulatory approvals, are in line with China's World Trade Organization commitments to open its insurance industry to foreign investment.
Under terms of the new licensing agreement Marsh, a subsidiary of New York-based Marsh & McLennan Companies, will no longer be limited to providing consulting services in China.
The firm will now be able to directly place certain lines of business as an insurance broker. The lines encompass large scale commercial risk, reinsurance, international marine, aviation and transport insurance.
The brokering 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 Chief Executive Officer 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,” added Mr. Storms.
Marsh has offices in Beijing, Shanghai and Guangzhou. Subject to CIRC approval, the firm has requested expansion into Chengdu and western China.
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