Insurance premiums to nearly double
Print Edition
CHINA aims to nearly double the proportion of insurance premiums in its gross domestic product to 5 percent over six years to further develop the industry.
The government will support insurance companies in developing innovative products in health insurance, pension plan, agriculture insurance and disaster insurance, the State Council, China’s Cabinet, said in a blueprint released yesterday on developing the insurance sector through 2020.
It forecasts the insurance penetration ratio to rise to 5 percent by 2020 from around 3 percent last year, and average insurance spending per capital to rise to 3,500 yuan (US$564) from around 1,300 yuan last year.
“The modern insurance industry is to become a pillar in improving the financial system, a strong support to improve livelihood,” the blueprint said.
The government has also put forward for the first time an initiative to set up a disaster insurance system to protect public well being. All levels of government departments from central to local are encouraged to help set up the system by drafting insurance policies covering natural disasters, setting up insurance funds and a risk distribution mechanism.
A trial for disaster insurance has been approved in Shenzhen City and an area in Yunnan Province.
Shenzhen spent 36 million yuan for 2.5 billion yuan of life insurance coverage for injuries and casualties. But Yunnan has yet to launch a product over difficult price negotiations for coverage.
There are currently no specific policies to cover houses and infrastructure destroyed by disasters such as earthquake, typhoon and tsunami.
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