China’s Bank of Communications (BoCom) and the Commonwealth Bank of Australia have today launched a new joint venture life insurance partnership in Shanghai.
BoCom is the first Chinese bank given approval by China regulators to enter the insurance market as part of a pilot program. Previously known as China Life CMG, BoCom has taken over China Life’s 51% share of the joint venture. Today it was renamed BoCommLife Insurance Company Limited.
During the past decade Commonwealth Bank has gained significant understanding of the enormous potential in the life insurance industry in China through its partnership in China Life CMG.
“We intend to help grow the business nationally by tapping into BoCom’s resources and its enormous distribution network,” Simon Blair, Group Executive International Financial Services said.
“Combined with the Commonwealth Bank’s experience in bancassurance, we are confident of a strong and successful future for BoCommLife. Our goal is to create a leading and competitive life insurer that covers the national China market.”
BoCom is the 5th largest bank in China. It has 2,600 outlets in 143 cities, 350 wealth management centres and 10,000 self-help machines. It is listed on both the Shanghai and Hong Kong stock exchanges and celebrated its 100year anniversary in 2008.