China issues guidelines to promote high-quality development of insurance sector

BEIJING, Sept. 11 (Xinhua) — China’s State Council has unveiled a set of guidelines to enhance the regulation and high-quality development of the insurance sector, as well as risk prevention in the industry.
The guidelines call for efforts to form an initial high-quality development framework for the insurance industry that has been steadily expanding coverage, increasingly comprehensive protection, continuously improving services, stable and balanced asset allocation, sufficient solvency, sound and effective governance, and internal control by 2029.
By 2035, the insurance industry should have a complete market system, diversified products and services, scientific and effective supervision, and strong international competitiveness, according to the guidelines.
It is necessary to strengthen the regulation of insurance market access, tighten the continuous supervision of insurance institutions, crack down on illegal activities in the insurance sector, and effectively prevent and resolve risks in the industry in an orderly manner, the guidelines noted.
Efforts should also be made to diversify forms of catastrophe insurance, actively develop commercial old-age financial products and the private pension system, expand health insurance coverage, optimize the inclusive insurance system, and improve the industry’s ability to serve people’s livelihoods, the guidelines say.
They urge a focus on national strategies and key areas, and note that the insurance sector should serve sci-tech innovation and the construction of modern industrial systems.
The insurance market system should be optimized constantly, the guidelines say, calling for deepened reforms in key areas of the insurance sector and the advancement of the industry’s high-level opening-up.
They also call for improved accuracy in product pricing, the promotion of digital and smart development, and the enhancement of the industry’s capacity for sustainable development. ■