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Insurance products to increase in price in Oct

By Hu Yang (chinadaily.com.cn)
Updated: 2009-09-28 15:42

Many life insurance companies have stopped the sale of some insurance products recently and plan to reintroduce them after the National Holiday with certain revisions. Prices of these upgraded products will increase.

The upgrading is being carried out to meet the provisions of the new insurance law, which will take effect on October 1. The new law has major revisions in the part concerning insurance contracts and is said to further protect the interests of policyholders.

China Life Insurance has temporarily suspended the sale of its two Kangning  critical illness plans, which together account for 40 percent of the serious illness insurance market.

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Zhou Duoguang, general manager of China Life’s product development department, revealed that the two upgraded products will be available on October 1, with about ten more major diseases covered.

The insurer will also pay out three times the premiums for both death and critical illnesses. Kangning previously covered 10 critical illnesses only and paid out three times the premiums for death and twice for critical illnesses.

Other insurers have either already suspended or withdrawn some policies or are planning to do so. Among them are Generali China Life, CITIC-Prudential Life, Pacific-Antai Life, New China Life and Taikang Life Insurance.

Cathay Life Insurance has gone a step further. It recently launched two policies – one serious illness insurance and one life insurance with dividends – in accordance with the new insurance law.

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The full text is available in the September Issue of China Insurance. Please visit E-Shop for more subscription details.