BEIJING—The State Council of China has issued new guidelines aimed at promoting the regulation, high-quality development, and risk prevention within the nation’s insurance sector.
According to Namibia Press Agency, the recently unveiled guidelines set forth a strategic vision for the insurance industry, aiming to establish a high-quality development framework by 2029. This framework includes expanding coverage, enhancing comprehensive protection, improving service quality, maintaining stable and balanced asset allocation, ensuring sufficient solvency, and upholding effective governance and internal control systems.
By 2035, the guidelines envisage an insurance industry characterized by a complete market system, a diversity of products and services, scientific and effective supervision, and robust international competitiveness. These reforms are designed to strengthen the overall health and sustainability of the insurance sector.
The guidelines underscore the necessity of stringent regulation concerning market access for insurance entities, ongoing supervision of these institutions, and a robust crackdown on illegal activities within the sector to prevent and orderly resolve industry risks. Additionally, there is a significant emphasis on diversifying catastrophe insurance forms, developing commercial products for old-age finances, expanding health insurance coverage, and optimizing the inclusive insurance system to enhance the industry’s role in supporting public welfare.
The directives also stress the importance of aligning insurance services with national strategies and pivotal areas, particularly supporting scientific-technological innovation and the development of modern industrial systems. The guidelines call for continuous optimization of the insurance market system, deepened reforms in crucial insurance areas, and promotion of high-level industry opening-up.
Furthermore, the guidelines advocate for the enhancement of product pricing accuracy, the advancement of digital and smart development within the sector, and the improvement of the industry’s capacity for sustainable development, marking a significant step in China’s efforts to fortify its financial services landscape.