Domestic insurers in China are being encouraged by the China Insurance Regulatory Commission (the CIRC) to grow new business through electronic commerce in order to optimize the structure of sales channels and foster the growth of new business.

Mr Li Kemu, CIRC Vice-Chairman, stated that insurers needed to combine various communication media, such as the internet, telephone and short messaging service, to develop product sales and promotion, online sales and customer service and enhance their overall insurance service.

According to the CIRC, at the end of 2009, China had 32 insurance companies that used the internet as a sales channel, and another 36 insurance companies that ran telemarketing operations. E-insurance sales in China represented just 1% of the total premiums revenue of RMB1.11 trillion of the insurance industry (including life).