early days after liberation, people’s government to take over parts of the bureaucratic capital of the insurance companies, while rectifying transformation of private insurance companies for the new Chinese insurance industry created the conditions for the birth and development. The establishment of the Chinese People’s Insurance Company, marking China’s insurance industry has entered a new historical period of development.
(A) transform the old China’s insurance industry
To establish a new meet the needs of socialist construction, the insurance industry, in 1949 China’s insurance industry in old people’s government conducted a comprehensive clean-up, consolidation and transformation.
1 to take over the bureaucratic capital of insurance companies. Since the liberation of the eve of the bureaucratic capital of the insurance sector are concentrated in Shanghai, People’s Government to take over the work of the bureaucratic capital of insurance institutions in order to focus on Shanghai. Take over the work from May 1949 until the end of October has basically ended. Chinese insurance companies and exclusive products ship insurance, accident insurance, the crew of China Airlines accident liability insurance joint approval to resume operation, other bureaucratic capital of insurance institutions to be closed down. Shanghai outside of the bureaucratic capital of insurance institutions taken over by the local military control committee. At that time the bureaucratic capital of insurance institutions, due to the transfer of funds and responsible persons for corruption and misappropriation, assets have been depleted exhausted. Of its employees by the Military Control Commission of organizational learning politics, many people after the establishment of the Chinese People’s Insurance Company embarked on a people’s insurance industry new jobs.
2, transformation of the private insurance industry. After the liberation, the development of private insurance companies around the succession management practices, such as re-checked assets, required by business type deposited the corresponding bond and so on, and strengthen supervision and inspection. Under the new regulations, foreign private insurance companies to resume business in various places, but most insurance companies solvency weak underwriting capabilities are limited.
As the original reinsurance group most of the disintegration of the relationship between the external interruption of reinsurance, in the Military Control Commission’s support, July 20, 1949 in Shanghai, was established by the voluntary participation of private insurance companies reinsurance organization “China invited reinsurance exchange office “(referred to as NLD), the main fire handling reinsurance business. The establishment of the NLD, the promotion of the private Chinese merchants insurance business development, enhancing the credibility of the insurance industry. Public-private partnerships with the private insurance companies, the NLD completed its historic mission in early 1952.
In 1951 and 1952, public-private partnership, “Taiping Insurance Company”, “Xinfeng insurance company” were set up. Both companies are based on the number of private insurance companies formed, and its business scope is limited to specific areas and industry, operating on the abolition of the commission system and the agent system. In 1956, the national private commerce and industry after industry-wide public-private partnerships, the state property of public-private partnerships to implement compulsory insurance, designated the property for the processing of the Chinese People’s Insurance Company for compulsory insurance of statutory bodies. That same year, Pacific, and Xinfeng the two companies merged called “Pacific Insurance Company,” is no longer operating domestic insurance business, and specializes in overseas insurance. The merger of the two companies achieved the insurance industry-wide public-private partnership, marking the completion of the socialist transformation of the insurance industry. Since then, China’s domestic insurance business started by the Chinese People’s Insurance Company exclusive situation.
3, foreign insurance companies out of China’s insurance market. Before 1949, foreign insurance companies by virtue of their political privileges, as well as its strong financial strength, control of China’s insurance market. After the founding of New China, People’s abolition of their privileges, and to strengthen supervision, requiring re-registration and pay the deposit. In May 1950, the National there are 61 foreign insurance companies, of which 37 Shanghai, Tianjin 10, Guangzhou, 8, 5, Qingdao, Chongqing 1. Governments to adopt restrictive policies and the use of equal emphasis on the one hand, to allow their business to continue to handle a number of other insurance companies were not allowed to operate the business, such as marine insurance, foreign nationals foreign exchange and insurance; the other hand, proceeding from safeguarding the national interests, its business the scope and made the necessary restrictions on business activities, its violation of national laws and acts of insubordination be dealt with severely. With the rapid growth of state-owned insurance business and foreign insurance companies to lose not only rely on the Government to obtain the privileges of high profits, and have lost a great number of reinsurance income. In the state-owned foreign trade system and the new customs building, its source of direct business less and less. 1949 premium income of foreign insurance companies account for 62% of premium income in 1950 dropped to 9.8% in 1951 to 0.4% in 1952 was only 0.1%. To the end of 1952, foreign insurance companies in China one after another application for suspension of business, the withdrawal of China’s insurance market.
(B) the birth of the Chinese People’s Insurance Company
In August 1949, as soon as possible to restore and develop the national economy destroyed by years of war, the Central People’s Government in Shanghai held its first national financial conference. At the meeting, Bank of China proposed the establishment of “China People’s Insurance Company”, and immediately after the organizational preparations. Approved by the CPC Central Committee, the Chinese People’s Insurance Company on October 20, 1949 formally established. This is the founding of New China’s first state-owned insurance companies. After the founding of the Chinese People’s Insurance Company quickly established branches throughout the country and to parts of the People’s Bank relies on to build a broad network of insurance agents.
In line with the national economic recovery and development, the Chinese People’s Insurance Company to actively conduct business, focusing on state-owned enterprises undertaken above the county supply and marketing cooperatives and state organs, property and railways, ships, aircraft and passengers compulsory insurance. In the city, opened fire, transportation insurance, group and individual life insurance, car insurance, passenger accident insurance, parcel insurance, aviation and transport insurance, gold note insurance, shipping insurance and so on. In the Village, an active pilot agricultural insurance, mainly livestock insurance, cotton, insurance and fisheries insurance. To get rid of Western countries to control China’s insurance market, the Chinese People’s Insurance Company is also committed to the development of foreign business, and many friendly countries have established reinsurance relationships. In addition to handling direct business, but also private companies to accept reinsurance business. China People’s Insurance Company quickly become a national leader in the insurance industry and the power to fundamentally end the monopoly of China’s insurance market to foreign insurance companies situation.
October 14th, 2009 
youhan 
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