Income from insurance premiums rose 22 percent in Shanghai last year as demand for financial protections expanded. Premiums topped 40.7 billion yuan (US$5.25 billion) through the end of December, accounting for 7.22 percent of the country's total.

Eighty percent of the city's figure was derived from domestic insurers while the remainder was generated by overseas firms, including the Chinese affiliates of American International Assurance, Allianz, MetLife and AXA.

Shanghai is expected to collect as much as 76.44 billion yuan in premiums by 2010, yielding an annual growth of 18 percent over a five-year period. Insurance penetration, the ratio of the insurance sector against the city's economy, gained 0.3 percentage points to 3.96 percent.

Average insurance expenses were 2,289 yuan per person last year, the regulator said, without giving the figure for 2005. A trial for public fire insurance and a boost in travel insurance are on the state's schedule this year.

In addition, the regulator will begin classification tests for insurance agents by July. It will also regulate the promotion of insurance products to combat false and exaggerated claims.

At the end of 2006, there were 71 insurers and five insurance asset management companies in Shanghai. The city is now home to 34,303 insurance agents, most of whom are selling life insurance products.

Shanghai is building itself into an international financial hub as big names in the insurance and banking industries are setting up shops in the city.