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The total assets of China's booming insurance institutions are expected to reach two trillion yuan (US$250 billion) by the end of this year, said a senior insurance regulatory official on Tuesday.

 

The number of China's insurance institutions increased from 42 in 2002 to 100 at the end of 2005, with their total assets hitting1.8 trillion yuan (US$220 billion), said Zhou Yanli, vice chairman of the China Insurance Regulatory Commission.

 

The premium revenue of China's insurance industry in 2005 amounted to 492.7 billion yuan (US$62 billion), 1.6 times that of 2002, said Zhou, at an insurance conference held in Hohhot, capital of north China's Inner Mongolia Autonomous Region.

 

In the first nine months of this year, the premium revenue hit 430 billion yuan (US$54 billion), according to Zhou.

 

"The insurance industry has become one of the fastest growing industries in China," he said.

 

Meanwhile, an insurance protection fund system has been developed in recent years to enhance the risk resolution capability of the insurance industry.

 

The insurance protection fund has now reached 6.3 billion yuan (US$800 million), said Zhou, adding that the fund will increase by two billion yuan (US$250 million) each year.

 

(Xinhua News Agency November 15, 2006)