This
paper explains, in detail, the laws and
operation of the Chinese
insurance industry and stresses that China's WTO membership specifically compelled the opening of its insurance
sector to foreign competition according to WTO rules and bilateral agreements with fellow member nations. The author points out that, for developing countries like China and Iran, exercising flexibility in making commitments permits opportunities to be gained in liberalizing the insurance service
investment sector. The paper relates that the Japan's insurance industry was robustly growing along with the rest of the economy in the great moments of the 1980s and the first half of the 1990s; its overwhelming premium income and asset formation was comparable with that U.S.A., and the limitations of
domestic opportunity led it to look outwards for investment.