They are subject to the supervision of the Beijing branch of the People's Bank of China. The bank keeps an eye on their activities through visits, meetings, briefings and joint conferences. Representative offices of foreign insurance firms are mainly engaged in market research, personnel training and the provision of technical support to Chinese-funded insurance companies and counselling to government departments. In 1997, the representative offices in Beijing held 83 seminars on the Chinese insurance market and conducted more than 40 market surveys. A few foreign insurers also participated in poverty-relief and charity programmes.
Competition is already quite keen in Mainland China's insurance sector.
Although PICC has almost complete control of the market, other insurers are doing their best to woo customers. One of the methods employed is to cut prices as low as possible. Other companies are offering discounts on indirect premiums and other fees. The offer of no-claim bonus is a common practice in overseas insurance markets. Unfortunately, the second practice contravenes Chinese regulations.