More than 20 foreign insurance companies which entered the China insurance market after the World Trade Organisation agreement was ratified are now pulling out.

Reports say the foreigners have been pulling out over the past 18 months, claiming the Chinese regulators have made it too tough for foreign companies to establish a presence.

Insurers which have closed down their representative offices include German-based Allianz, US-based Lincoln National and Canadian giant Manulife.

Any foreign insurer wanting to break into the Chinese market has to establish a representative office for a minimum of two years before it can submit a licence application.