Bermuda?s success in the insurance sector could be used as a model for the development of China?s fledgling industry

This as 15 executives from China?s insurance regulatory body ? the China Insurance Regulatory Commission (CIRC) ? begin a week in Bermuda taking part in an inaugural programme designed to show how the Island became a leading insurance market.

The initiative ? the Chinese Executive Insurance Programme ? is being conducted by the United Nation?s World Trade University (WTU) in partnership with sponsor ACE Limited.

The programme kicked off yesterday at a champagne reception that included representatives from ACE, the Bermuda Government, the United Nations, the WTU and 25 from the China Insurance Regulatory Commission.

ACE CEO Mr. Duperreault welcomed the Chinese delegates, and told them they were about to embark on a ?wonderful opportunity (that) has been created to show how an insurance market is developed and how it stays successful?.

He said that what was learned in Bermuda this week would be taken back to China to be used in developing that insurance sector.

CIRC chairman Wu Dingfu, who travelled to Bermuda for the programme?s launch and leaves the Island today, told the group that the Chinese government had always put emphasis on the ?training of skilled human resources?.

But he added that in the last year that had been elevated to an even higher level ?of national interest?, as the giant nation bids to become one of the world?s leading economies.

Speaking of the nation?s developing insurance sector, he said: ?We are at a stage of change,? and said that this industry was undergoing ?rapid growth?.

He added that China?s government saw the training of human resources as key to ?sustaining growth?, and that the launch of the Chinese Executive Insurance Programme was ?most timely and critical?.

Mr. Wu called on those in the programme to study hard to learn the fundamental principles of insurance management and to understand the new issues (that face) global insurers.

Of the 15 taking part in the programme, eight of the participants work in the Beijing office of the China Insurance Regulatory Commission (CIRC) while the rest are from provincial offices across China. The Bermuda programme is to be followed by a second three-day component in London.

Yesterday, CIRC deputy director general Meng Zhaoyi, who also leaves Bermuda today, told that China?s regulatory body was divided into three areas; banking, securities and insurance. Although he said it is tied to government in that it reports directly to the country?s state council, that regulators were following widely accepted international standards on insolvency and were working to open up China to foreign markets.

He said Government was keen to see this happen as this would give the local market an example to follow.

While in Bermuda, the 15 insurance regulators will hear first hand how Bermuda monitors its insurance sector with a special presentation from the Bermuda Monetary Authority.

Acting Premier Terry Lister yesterday welcomed the group and said Bermuda was happy to be a host to a programme which would enable the Chinese delegation the opportunity to learn about the development of the insurance industry Bermuda and reap experiences from Bermuda executives.

?I thank ACE for making this possible,? Mr. Lister said, adding that the sessions delegates would participate in over the next few days could help lay the groundwork for ?endless possibilities? within the Chinese insurance industry.

Mr. Lister said the vast difference between China and Bermuda in terms of population and geographical size might make them an odd match but it was insurance which had brought the two together, in the interest of encouraging growth and development for China?s insurance sector.

He said he felt certain that much would be learned during the programme but also hoped participants would take the time to see Bermuda and ?if time permits, our splendid beaches?.

Bermuda was said to have been chosen as the place to host this inaugural session of the programme because it is a model of a well-established, leading insurance market.

This was according to the WTU?s president and CEO Sujit Chowdhury, who said the programme had been developed in recognition of the many challenges that face the still fledgling insurance market in China, but also took into account the potential opportunities for the giant nation with predictions that China will grow to be one of the world?s top three economies in the next two decades.

Mr. Chowdhury said it was imperative that China have a strong and well-regulated insurance market if it is too succeed, and have a competitive edge, as a global economy.

He said part of this was to develop a skilled workforce, and this programme was a step in that direction

?In this spirit of such optimism, we launch this programme,? Mr. Chowdhury said, adding that the four parties ? ACE, Huatai Insurance Company of China, CIRC and the UN?s World Trade University ? were on hand for the signing of a memo of understanding but that he hoped this programme would go far beyond this formality to the development of a strong insurance sector for China.

It may be especially fitting that ACE is sponsoring the event as in 2002 it was the first foreign insurer to take a significant stake in a Chinese insurance company when it acquired 22 percent of the shares of the Huatai Insurance Company of China for $150 million.

Huatai, which was established eight years ago, was China?s first nationally licensed joint stock property/casualty insurer and the fourth largest provider of property/casualty products and services in China.

Wang Zimu, chairman and CEO of Hautai Insurance Company of China, was also on hand yesterday for the launch of this pivotal programme for Chinese insurance executives.

?As I understand it, Bermuda is truly insurance heaven? he said, referring to the Island?s preeminence as a market with more than 1,300 registered insurance companies and $2 billion in insurance assets.

Mr. Wang said that the programme launched yesterday was a ?first? and was ?a great beginning as we all know China has massive potential as an insurance market in the world?.

He said although Huatai?s partnership with ACE dated back only two years, it had proved to be ?an excellent partnership?.

Mr. Wang added that the marriage between the two companies had had the support and encouragement of the CIRC during that time.

?There is a saying that in order to fully develop the Chinese market, you need a golden shovel. Now we have that between ACE and Huatai and directed by CIRC,? he said.

He added that the Chinese government was in favour of a strong insurance sector and wanted a market that was ?open, knowledge driven and somewhat autonomous?.

ACE COO and president Evan Greenberg, who is slated to succeed Mr. Duperreault as CEO next week, said he wanted to thank the Chinese delegates on the part of ACE or ?the other side of the golden shovel we hold together?.

?This is indeed an auspicious occasion,? he said, in welcoming the delegation who had come ?thousands of miles? to be part of this moment.

Mr. Greenberg said this was a ?golden opportunity? that ultimately could lead to the building of a ?thriving insurance sector in the republic of China?.

He added: ?This is an opportunity to be seized and we know each of the participants this week will do just that.?