Zurich Financial Services yesterday teamed up with the Pudong New Area government to set up a 20 million yuan (US$2.9 million) research center for marine finance in Shanghai - a reflection of the insurer's long-term commitment to China and the city.

The insurer is also in talks with regulators to set up a subsidiary in China to speed up its expansion in the world's fastest growing major market.

Martin Senn, chief executive officer of Zurich Financial, yesterday said in Shanghai"The research and development center demonstrates our long-going commitment to China and Shanghai."

It's the insurer's first center for marine finance in China. It has already spent US$3.5 million to set up a research center on insurance and risk management at Tsinghua University in Beijing in 2008.

Meanwhile, the insurer is also considering setting up a subsidiary for its general insurance business in China to accelerate its growth in the country.

The center in Shanghai will research topics related to marine insurance and practices and how the city can leverage on overseas expertise and experience.The center will help Shanghai become a global finance and shipping hub by 2020, industry watchers said.

The world's No. 3 insurer is in close talks with regulators and the Shanghai government for a license in Shanghai. But it hasn't sent the application to the China Insurance Regulatory Commission yet, said Johnny Chen, CEO of China and Southeast Asia for Zurich.