Position Paper

The EU-China Negotiations for an Investment Agreement

The German insurance industry welcomes the EU-China negotiations for an investment agreement. We believe that the negotiations should be used to eliminate Chinese restrictions in the insurance sector.

Improved investment conditions on the Chinese insurance market will create a win-win situation for all parties involved:

  • For the German insurance industry, since the Chinese market, which had a nominal growth rate of more than 10% in 2012 and 2013, provides huge potential;
  • For the local economy and consumers, since an increased number of providers results in increased competition and a wider range of insurance products offered on the Chinese market;
  • For the Chinese government, since potential risks may be spread more widely and the transfer of knowledge will be increased.

From the point of view of the German insurers, the largest barriers are:

  • Restrictive regulations on investments in insurance undertakings;
  • In the field of life insurance, the obligation for foreign insurers to enter the Chinese insurance market only in the form of joint ventures;
  • Discrimination with regard to the expansion of business activities to other provinces of the country;
  • Formal barriers to licensing in important lines of business;
  • Insufficient consideration of reinsurance provided by non-Chinese undertakings;
  • General issues: non-transparent administrative procedures, lack of legal certainty and restricted legal protection.
>> German version of the position paper
>> International markets: Key regulatory and market access issues in relations with specific third countries


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Position Paper

on the EU-China Negotiations for an Investment Agreement