Aegon, the Dutch insurer, has been given permission for a life insurance joint venture with a domestic partner in China.
The chairman of Aegon's executive board, Kees Storm, said: "The Chinese market is growing rapidly. It has strong potential with the highest expected market growth rate in Asia during the next decade."
The move follows China's recent admission to the World Trade Organisation (WTO). Yesterday, Zurich Financial Services' announced it was to enter the Chinese non-life insurance market.
Although the Chinese insurance market is one of the world's largest, the country's government has had tight controls on investment by foreign companies. Licences granted to foreign insurers tend to be restrictive, usually permitting companies to do either life or general insurance.
Winning a licence is just the beginning. Insurers need a separate licence for each city and then have to hire, train and motivate large sales forces.
