Thursday, October 19, 2017

Chinese life firms urged to diversify products

A senior official at the China Insurance Regulatory Commission (CIRC) is urging life insurers to offer more varied products so they can diversify risk.

CIRC vice-chairman Huang Hong identified market access, early intervention and fool-proof withdrawal mechanisms as the three essentials in reducing potential risks.

As of July, life insurers in China have generated Rmb1.96 trillion (US$300 billion) in premium income, representing an increase of 24% year-on-year, based on data used by the CIRC.

What this means, according to Huang, is that many people are acknowledging the important role of life insurance in their financial security.

However, he added that players must continue to innovate, especially since some insurers are offering homogeneous plans with short durations.

He suggested a multi-tier and widely covered insurance product portfolio to create a healthy market.

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