China has approved new insurance ventures from BNP Paribas and Prudential Financial, indicating a move towards greater openness in its insurance market. The National Financial Regulatory Administration has sanctioned a joint venture between BNP Paribas and Volkswagen Financial Services, while Prudential has gained approval for an insurance asset management firm in Beijing. This approval comes amidst a significant growth in the Chinese insurance sector, which reached total assets of $4.2 trillion by the end of 2023, making it the second-largest market globally. Additionally, China’s regulatory environment is increasingly supportive, fostering investment confidence while also benefiting life insurers facing pressure on returns from foreign investments.
