Commercial pension business pilots launched
The China Banking and Insurance Regulatory Commission (CBIRC) has announced the launch of pilots of commercial pension business of pension insurance companies on January 1, 2023.
In a statement the regulatory authority said the move was in line with the implementation of the decisions and work plans of the 20th CPC National Congress on developing a multi-level and multi-pillar pension system, to further enrich the supply of commercial pension and relevant financial products, and better meet the diverse retirement needs of the people. The pilot will last for a tentative period of one year.
The Notice clarifies the scope of commercial pension business, which refers to the services encompassing pension account management, retirement planning, fund management and risk management, which can meet the diverse retirement needs of customers in their life cycle. The four pension insurance companies participating in the pilots are PICC Pension Insurance Co., Ltd., China Life Pension Insurance Co., Ltd., Taiping Pension Co., Ltd. and Guomin Pension Co., Ltd. The pilot areas include 10 provinces (cities), ie. Beijing, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Henan, Guangdong, Sichuan and Shaanxi. The Notice requires that the pilot pension insurance companies strengthen unified management, improve their working mechanism, establish and improve the information system, and have the processing capability commensurate with the business needs. They are also required to make prudent business plans, increase resources, and steadily progress with relevant work.
Next, the CBIRC will keep close track of the pilot progress, standardise business operations, strengthen supervision and management, and safeguard the legitimate rights and interests of consumers. At the same time, the CBIRC will timely evaluate the pilot program, study and improve the regulatory rules, promote the pilot experience as appropriate, and encourage pension insurance companies to contribute to the multi-level and multi-pillar pension system.
