The latest statistics show that Chinese insurance companies reported a total income of 210.9 billion yuan (25.4 billion U.S. dollars) in premium in 2001, a rise of 32.19 percent on a yearly basis.

Of the total amount, the premium on life insurance reached 142.39 billion yuan (17.15 billion U.S. dollars), up by 42.76 percent and accounting for 67.51 percent of the total premium income in the country last year, according to statistics published in Beijing Wednesday.

Premium on property totaled 68.5 billion yuan (8.25 billion U.S. dollars), an increase of 14.57 percent from the previous year.

Chinese insurance companies paid 59.82 billion yuan (7.2 billion U.S. dollars) in reparations in 2001, a year-on-year rise of 70.89 percent.

Experts pointed out that with a population of nearly 1.3 billion, China boasts great potential for the development of insurance services.

They said that as a result of rapid rise in China's GDP, the income of both urban and rural people has increased markedly and that would encourage more people to invest in insurance.

(Xinhua News Agency January 17, 2002)