As the first sector opened up to the world upon the entrance to the WTO, foreign participation and investment in the insurance sector has increased cooperation and provided more options to consumers, Sohu News reported.   In 2004, China Insurance Regulatory Commission allowed foreign life insurance firms to offer health insurance, group insurance and pension insurance in China. Through 2006, China continues to up its insurance market and allow foreign insurance firms to establish branches in Mainland.   Influence of WTO on insurance sector The entrance of foreign insurance firms will increase insurance capital supply and in turn raise the position of the financial insurance sector in the national economic structure. Since foreign insurance firms exert external pressure on domestic firms, this forces the domestic sector to reform itself to increase its competitiveness. Many workers in the sector are thus receiving training to reach international operational standards.   Development pattern of foreign investors In the first half of 2005, foreign insurance firms had insurance amounts totaling 264.58 million yuan, which is a 9.77 percent share of the market. Although their absolute share of the market is still not high, the growth is rapid with an average of 30 percent growth in the 4 years followed China’s entrance to WTO.   Since foreign insurance firms attach great importance to product innovation, advanced financial management, as well as operations management, they have achieved better margins through optimized internal management.   Concerning domestic price wars, foreign insurance firms do not follow suit. Instead, they prioritize branding and stable business expansion strategies in order to provide a solid foundation for long-term profit.   Advantages of Chinese insurance companies Facing the competition with foreign companies, Chinese insurance companies take advantage of the established social network and good public relations to manage their share of the market. Since they already have domestic establishments, they do not suffer from the high start-up costs foreign firms face.   A win-win situation The advantages both foreign and Chinese insurance firms have provide a foundation for cooperation that is beneficial for the growth and development of China’s insurance sector. Since many fields in the sector are still unexplored, joint ventures between Chinese and foreign companies can develop new products and investments which could generate greater profit for both sides. The opening of Chinese insurance market guarantees the continuous cooperation in this sector.