Safety a priority as key insurance sector gets boost

China considers financial safety a top priority amid efforts to strengthen the developing commercial endowment insurance sector and boost related regulation in this area, a senior official with China's top insurance regulatory body said on Friday.

"Endowment insurance is what people rely on for their old age and at times of illness. Therefore, it's important for the endowment fund to have a steady financial return, and it should not be put in areas with high financial risk," Huang Hong, vice-chairman of the China Insurance Regulatory Commission (CIRC), said at a news briefing on Friday.

The State Council on Wednesday decided to issue an array of incentives to encourage the growth of commercial endowment insurance, including pilot tax incentives as well as supporting commercial insurance funds to participate in building nursing homes for the elderly.

Huang said the CIRC will issue particular rules and regulations in supervising commercial endowment insurance funds, while qualifications for commercial insurance groups are also to be raised in terms of risk control and financial capability.

China also lacks an adequate number of top-tier actuaries in the commercial insurance fields, Huang said, advocating colleges and universities enhance training in such areas.

He said that the CIRC is ready to work with other ministries to give green channels and priorities for commercial insurance funds to participate in a national strategy as well as livelihood projects to support the economy.