Two Shanghai-based insurers have gained approval to set up a branch and division in Shanghai's soon-to-be-launched free trade zone, according to Shanghai's insurance regulator.

The China Insurance Regulatory Commission said it has approved China Pacific Insurance (Group) Co, Ltd to set up a branch in the zone. It has also approved of Dazhong Insurance setting up a division in the zone in a circular dated Sept 24.

Both companies will mainly provide property insurance in the zone, according to the regulator.

Analysts said enterprises operating in the zone, scheduled to be launched on Sunday, will bring significant demand for a variety of insurance services.