Oliver Bate, chief executive officer of Allianz SE, said that up to 30 percent of the newly generated premium in the world will be coming from China in the next 10 years.

While the detailed agenda of the new insurance company could not be released at this time, Bate said that they would like to bring their expertise in protection, risk management and reinsurance into the Chinese market.

Allianz's know-how in asset management has been stressed by Bate when it comes to the German insurer's outlook on the Chinese insurance market.

On the other hand, investing in China has been highly lucrative over the past three decades given the large number of market opportunities and the constantly strengthening renminbi, Bate explained.

"Today's announcement also follows the positive long-term cooperation between China and Germany, allowing our Chinese and international clients to be able to enjoy Allianz's comprehensive financial and risk management solutions and services, and benefit from the continued growth and liberalization of China's financial markets," said Oliver Bate, chairman and CEO of Allianz Group.