Insurance hardly meets needs, Li says

State Council agrees on developing stronger support for aging population

China will further promote the development and increase the supply of commercial insurance covering social services so as to better support an aging population and meet rising demand from people, the State Council's executive meeting chaired by Premier Li Keqiang decided on Monday.

"We must fully recognize the importance of commercial insurance in the social services sector," Li said. "The current supply of commercial insurance can hardly meet the needs in the changing demographics. Yet commercial insurance is an effective means for senior citizens to maintain and raise their quality of life."

It was agreed at the meeting on Monday that commercial endowment insurance will be developed at a faster pace and the overall pension insurance structure will be refined. Support will be given to developing－by drawing upon international experience－diversified pension annuity insurance products and medical insurance and accidental injury insurance that is tailored to the needs of those over age 60. The development of long-term nursing care insurance will be stepped up.

Insurance companies will be encouraged to provide comprehensive insurance products that cover multiple needs including medical care, nursing care and maternal services. New medical technologies and products will be included step by step in the coverage of commercial health insurances. Insurance products will be created to meet the needs of those working in new types of businesses.

"It is important to plan ahead and provide policy support, as appropriate, to continuously expand the scale of commercial endowment insurance and improve its quality so as to serve the ever-growing needs of the people. What is especially important is to increase the supply of insurance products and resolutely tackle the difficulty in settling insurance claims," Li said.

The meeting urged accelerated efforts to open up the insurance market and foster a level-playing field to promote the upgrading of insurance services.

"China has started relatively late in the development of commercial endowment insurance and thus lacks enough experience. It is important to learn from advanced acquired experience worldwide, continue to open up our insurance sector, and in this process, develop our own commercial endowment insurance to meet the needs of an aging society," Li said.