Two foreign-funded insurance brokerage companies have obtained permits for insurance brokerage business in China, marking the expansion of the country's financial opening-up.

According to the National Financial Regulatory Administration (NFRA), BMW (China) Insurance Brokers Co., Ltd. and ERGO-FESCO Broker Company Limited (ERGO-FESCO) are the first foreign-funded companies to be approved in the sector since 2018.

The companies received authorization to conduct insurance brokerage business, including working on insurance plans for policyholders as well as reinsurance brokerage, in the Chinese mainland.

"The Chinese government has achieved open, transparent and efficient communication. We are honored to be another proof of China's financial openness," said Andreas Glunz, the legal representative of BMW (China) Insurance Brokers Co., Ltd.

In an exclusive interview with Xinhua, Glunz said moving forward hand in hand with the limitless potential of the Chinese market, the company will benefit the real economy, Chinese consumers, and themselves.

According to him, the company has currently formed three major pillar businesses: corporate insurance, retail insurance and employee welfare protection. The company plans to accelerate business expansion in 2024, assisting the BMW Group's industrial chain to accelerate its transformation toward electrification, digitization and circular sustainability.

"We will strive to bring new products, new services and even innovative business models with an international management perspective to China's real economy," he said.

The company was jointly set up by two companies affiliated with the BMW Group, while ERGO-FESCO was co-established by ERGO -- one of the major insurance companies in Germany and Europe -- and Beijing Foreign Enterprise Human Resources Service Co., Ltd. (FESCO).

Jürgen Schmitz, chief executive officer of ERGO China, said the health insurance market has developed rapidly in China. Meanwhile, government healthcare policies and resources continue to improve and innovate, so that companies can better provide customers with tailored care and service plans.

In its strategy "Ambition 2025," ERGO regards China as one of its main strategic investment markets.

"It demonstrates our long-term commitment to the Chinese market as well as our confidence in China's insurance sector," he added.

According to a central financial work conference held in Beijing in late October, efforts should be made to better facilitate cross-border investment and financing to attract more foreign-funded institutions and long-term capital to China.

In Beijing alone, the NFRA Beijing bureau welcomed more than 100 visits of the management of foreign-funded banks from their headquarters or regional offices in the first three quarters of this year, while some multiple foreign-funded financial institutions have been approved to set up, raise investment and expand business in the city.

Zhang Liqing, director of the Center for International Finance Studies at the Central University of Finance and Economics, said the further opening-up in the finance sector has directly led to a substantial increase in the number of foreign-funded financial institutions in China and the continuous expansion of their business scope.

"This will stimulate domestic enterprises to engage more in international and domestic competition, thus enhancing their capacity in innovation and development," said Zhang.