China to Accelerate Growth of Insurance Sector

China has signalled that it intends to improve the country’s insurance services, to stimulate innovation and entrepreneurship.

A statement released following a meeting of the State Council, China’s cabinet, said that faster development of the sector will optimise the economic structure and promote innovation in social governance.

The insurance and social security systems will be integrated, making commercial insurance a major pillar of social security, the statement said.

Competent insurance companies are encouraged to roll out their commercial pension and health care plans, to invest in the old-age pension industry, participate in the integration of the health sector and develop new products.

Insurance will be incorporated into China’s disaster and accident prevention and alleviation system. It will also reinforce industrial upgrades, support agriculture and insurance funds will be encouraged to invest in urbanisation, infrastructure and residential renovations.

The statement also declared that the insurance sector should be a modern corporate system with new market entry and exit mechanisms, advanced practices and technology from abroad, able to export domestic insurance services.

The State Council also decided to exempt new energy cars from a 10% purchase tax that is to be introduced from September.

Draft amendments to some laws were approved by the meeting to offer legal foundation for streamlined administrative approval procedures.


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