BEIJING, Jan. 25 (Xinhua) -- The world's biggest insurance brokerage, Marsh, has become the first licensed foreign broker in China.

The approval to practice was given after China fulfilled its commitment to the World Trade Organization to fully open its insurance market to foreign investment from Dec. 11, 2006.

The Wholly-Owned Foreign Enterprise (WOFE) insurance brokerage license will allow Marsh to conduct business independently without teaming up with local partners.

Under the terms of the new licence, Marsh's existing risk consulting business will expand to include brokerage for insurance of large scale commercial risk, reinsurance, and international marine, aviation, and transport insurance, the company said.

The firm will operate in China as Marsh (Beijing) Insurance Brokers Co. Ltd..

"We are very grateful to the Chinese insurance regulator, the China Insurance Regulatory Commission, for awarding Marsh the first such license in China," said Marsh chairman and CEO, Brian Storms.

"In turn, we will continue to use all of our global resources to support the development of a Chinese market that Marsh considers to be one of its most important globally," he said.

Marsh has been in China for 25 years, previously providing services from three offices in Beijing, Shanghai and Guangzhou.

The firm has indicated intentions to expand into Chengdu, in western China, subject to CIRC approval.

Foreign insurance brokers have long been vying for a niche in the lucrative Chinese market. Aon, a major US broker, teamed up with China National Cereals, Oil and Foodstuffs Import and Export Corporation in 2004 to explore the huge market.

London-based Willis has set up a joint venture with the Shanghai Pudong Insurance Brokers Co, Ltd to tap the market.

Marsh, the world's leading risk and insurance services firm, has 26,000 employees, including around 100 in China, and annual revenues approaches five billion U.S. dollars.