BEIJING, Oct. 25 — China will expand the number of institutions offering commercial endowment insurance services to meet people’s diversified elderly care needs, according to a circular issued by the country’s top financial regulator on Wednesday.
The country launched a pilot programme for commercial endowment insurance services in Zhejiang and Chongqing in June 2021, involving six insurers. It then expanded the pilot programme nationwide in March 2022.
“Since the launch of the pilot programme, business progress has been generally stable,” the National Financial Regulatory Administration said, adding that the pilot programme will now become a regular business that qualified life insurance companies can operate.
The requirements for insurance companies set out in the circular include having shareholders’ equity of not less than 5 billion yuan (about US$696.52 million) at the end of the previous year and not less than 75 per cent of the company’s registered capital.
Qualified insurers can entrust large banks, joint-stock banks and city commercial banks that provide personal pension services to promote and sell commercial endowment insurance products in their areas of operation, according to the document.
