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BIZCHINA / Top Biz News
CIRC mulls rules for pension insurance management
By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-29 17:40
China's insurance regulator is working at constituting special
regulations on managing the pension insurance business, the Shanghai
Securities News reported yesterday, citing an official at the China
Insurance Regulatory Commission (CIRC).
It is a move to ensure insurance companies that handle corporate
annuities are able to pay expired debts and future liabilities to avoid
risks during managing annuities, and to protect the beneficiary's
legitimate rights and interests, said Liang Tao, director of CIRC
personal insurance regulatory department.
Statistics from the Ministry of Labor and Social Security (MLSS) show
that the corporate annuity fund, which covers 9.64 million people, had 91
billion yuan in assets in 2006, but only 15.8 billion yuan, or 17
percent, was managed by professional investors.
A total of 30 financial institutions, including insurers and securities
and trust companies, are currently designated as custodians, trustees and
asset managers for corporate annuity management.
A new round of campaign for granting qualifications required for the
annuity management will be launched next month.
Liang suggested that those pension insurers and life insurance companies
which plan a move into pensions try to acquire the trustee, custodian and
asset manager licenses from MLSS together, in a bid to improve the profit
ratio and reduce costs and risks.
A recent survey shows China's enterprises annuity will add 50 billion
yuan (US$6.62 billion) annually in five to 10 years.
CIRC encourages insurance companies to develop more flexible annuity
products and annuity account services, such as fixed and alterable
annuities, transferable annuities, as well as open annuity accounts, to
stress the investment and account management functions, according to
Liang.
Meanwhile, CIRC will study and discuss the taxation policies on pensions
with relative government organs, in an effort to bulid a multi-level
pension system covering everything from enterprise annuity to group and
personal pension insurance.
CIRC will help MLSS bring enterprise annuity funds under the management
of professional managers by the end of this year according to a
previously-set target. The insurance industry needs cooperation with MLSS
to take over the enterprise annuities, based on its advantages in
accurate calculation, product design, and sales?and asset management,
said Liang.
(For more biz stories, please visit Industry Updates)
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