CBIRC extends pilot

The China Banking and Insurance Regulatory Commission recently issued the “Notice on Expanding the Pilot Scope of Exclusive Commercial Endowment Insurance” expanding the pilot area of exclusive commercial endowment insurance to the whole country and allowing pension insurance companies to participate in the pilot.

Since the start of the pilot program of exclusive commercial endowment insurance, the overall operation has been stable and the social response has been good. As of the end of January 2022, the six pilot companies have underwritten nearly 50,000 insurance policies, with a cumulative premium of CNY400 million, of which nearly 10,000 employees from new industries and new formats such as couriers and online car-hailing drivers have insured. The features of exclusive commercial endowment insurance, which are easy to purchase, flexible in payment, and stable in income, have gradually been understood and accepted by consumers. Expanding the scope of the pilot program will enable more consumers to have access to exclusive commercial pension insurance products with strong pension functions, and further guide and cultivate the concept of pension financial consumption; it will help to promote pilot insurance companies to deeply explore the development experience of commercial pension insurance, promote and standardise the development of the third pillar pension insurance to better meet the people’s multi-level pension security needs.

Starting from March 1, 2022, the pilot area of exclusive commercial endowment insurance will be expanded to the whole country , and endowment insurance companies will be allowed to participate in the pilot program on the basis of the original 6 pilot insurance companies.