Exclusive commercial pension insurance is here

  Xinhua News Agency, Beijing, May 16 (Reporter Tan Moxiao) The China Banking and Insurance Regulatory Commission issued a notice a few days ago, deciding to launch exclusive commercial pension insurance pilot projects in Zhejiang Province (including Ningbo City) and Chongqing City from June 1, 2021.

The trial period is tentatively set for one year.

  Insurance companies participating in the pilot program include: People's Life Insurance Company of China, China Life Insurance Company, Taiping Life Insurance Co., Ltd., China Pacific Life Insurance Co., Ltd., Taikang Life Insurance Co., Ltd., and Xinhua Life Insurance Co., Ltd.

  The "Notice of the General Office of the China Banking and Insurance Regulatory Commission on Launching Exclusive Commercial Pension Insurance Pilots" pointed out that pilot insurance companies should innovate and develop exclusive commercial pension insurance products that are simple to insure, flexible in payment, and stable in return.

Consumers who reach the age of 60 years and above can receive pensions, and the period of receipt is not less than 10 years.

  The notice requires that pilot insurance companies should actively explore to serve the needs of employees in new industries, new business types, and various flexible employees.

Explore the establishment of internal management mechanisms that are compatible with the long-term development of the exclusive commercial pension insurance business, including long-term sales incentives and assessment mechanisms, risk management and control mechanisms, and longer-term investment assessment mechanisms.

  The notice clarified that under the premise of effective risk isolation, pilot insurance companies are encouraged to actively explore the integration of exclusive commercial pension insurance business development with pension and care services to meet differentiated pension needs.

  The person in charge of the relevant department of the China Banking and Insurance Regulatory Commission stated that the captive commercial pension insurance is an integral part of the third pillar of pension insurance.

Launching exclusive commercial endowment insurance pilots will help enrich the supply of third-pillar endowment insurance products, consolidate the multi-level and multi-pillar endowment insurance system, and meet the diverse needs of the people for endowment insurance.