By Xie Fang
The China Banking and Insurance Regulatory Commission (CBIRC) announced the first batch of insurance companies qualified to sell tax-deferred pension insurance products Thursday, the China Securities Journal reported on Friday.
A total of twelve domestic insurance companies including, among others, the China Life Insurance Co. and the New China Life Insurance Co. (NCI), appear on the list.
According to Yu Hua, deputy general manager of the life insurance subsidiary of the China Pacific Insurance Co. (CPIC), which is also among the twelve qualified companies, the CBIRC has carried out a detailed and across-the-board examination during the selection process.
It was reported that to obtain the qualification, insurance companies have to meet the strict requirements set forth by the CBIRC on registered capital, solvency, service networks and experience in managing pension funds, among others.
The release of the list is China’s latest move to develop its commercial pension insurance system. On May 1, China launched a pilot tax-deferred pension insurance program in Shanghai, Fujian province and Suzhou Industrial Park in Jiangsu province.
Analysts believe that China’s first tax-deferred pension insurance product is expected to enter the market as soon as next week.
Zhang Yinghua, a researcher with the World Social Insurance Center at the Chinese Academy of Social Sciences, noted that the tax-deferred pension insurance product is designed to encourage people to prepare for old age.
The Chinese government expects the commercial pension insurance system to become a supplement to the state-funded basic social insurance scheme and corporate annuities, which are now the two major pillars of the country’s pension system.
