China Looks to Accelerate its Insurance Industry
Published By : 10 Jul 2014 | Published By : QYRESEARCH
China is on a mission to stimulate entrepreneurship and innovation in its insurance sector. The country is looking to generate more income from its insurance sector, and will implement guidelines as a step towards the same. Economists in China are confident that with the insurance sector being developed faster, it will help in the optimization of the economic structure. This will also make way for more innovation in social governance, a statement that was released following a meeting of the cabinet of the State Council, China.
The statement further added that fuelling innovation in the social security systems and the insurance sector will go a long way in making commercial insurance a key aspect of the country’s social security set up. China is now encouraging insurance companies with a proven track record to roll out more commercial pension schemes as well as long-term and short-term commercial insurance plans. Companies will also be urged to invest more in the old-age pension sector and develop new products while increasing their participation in the health sector.
China will also look more closely at the idea of incorporating insurance into the disaster alleviation and accident prevention system. In the meeting, officials also decided to reinforce agriculture-support schemes, industrial upgrades, and other insurance funds pertaining to infrastructure development.
The statement further added that the Chinese insurance sector should be a akin to a modern corporate entity that comprises mechanisms for entering new markets and existing them as well. Export of domestic insurance services is another facet that the industry will focus on.