Australian insurers are expected to gain increased access to the expanding Chinese market under the free trade deal to be signed this afternoon.

The deal widens opportunities for insurance companies and banks, among other sectors, and will reportedly include access to China’s third-party motor vehicle insurance schemes.

President Xi Jinping will sign the agreement with Prime Minister Tony Abbott after addressing Parliament.

The two nations agreed to start negotiations on a free trade agreement in 2005 after a preliminary feasibility study.

IAG was among companies to make submissions to the Federal Government, outlining areas of focus for negotiations, including foreign ownership rules and access to the compulsory motor insurance market.

A spokesman told insuranceNEWS.com.au IAG welcomes the agreement “and we look forward to seeing the detail”.

In 2012 IAG bought a 20% stake in China’s Bohai Property Insurance Company – which is primarily a motor insurer – as part of its wider expansion in Asia.

Bohai’s gross written premium for the year to last June 30 was $376 million, with IAG’s share about $75 million.

Former CGU head of sales and distribution (broker and agent) Andrew Beer was appointed Head of China (IAG) and Deputy CEO, Bohai Property Insurance, in May this year.

QBE opened a representative office in Guangzhou in 1998, while AMP Capital last year established a funds management business with China Life Asset Management Company.