Industry News | The CBRC encourages insurance companies to actively participate in the individual pension system

In order to promote the construction of a multi-level and multi-pillar pension insurance system and give full play to the role of insurance companies in serving old-age security, the Banking and Insurance Regulatory Commission recently issued the Notice on Promoting the Participation of Insurance Companies in Matters Related to the Individual Pension System (Draft for Comments).

The draft for comments requires that insurance companies should conscientiously implement the relevant system requirements of personal pensions, effectively exert their advantages, reasonably control costs, continuously improve their capabilities, achieve safe operation, stable returns, convenient services, and provide the people with long-term preservation and appreciation of commercial pension insurance with concise and understandable terms. 

The Draft for Comments clarifies that the commercial endowment insurance provided by insurance companies includes annuity insurance, two-full insurance, etc., the product insurance period is not less than 5 years, and the insurance liability is limited to the survival insurance payment, maturity payment, death, total disability, disability or nursing status, which can meet the flexible requirements of individual pension system participants. 

The Draft for Comments requires that when an insurance company signs an insurance contract with an individual pension system participant, it should specifically explain the personal pension system and its tax policy, the management requirements of the individual pension fund account, and the information management requirements of the insurance industry platform. Insurance companies should strengthen the control of personal pension funds, and all kinds of capital transactions that occur in personal pension products-related businesses should meet the requirements for closed management of capital accounts. 

The person in charge of the relevant department of the Banking and Insurance Regulatory Commission said that the CBRC will smoothly and orderly promote the personal pension system and the pilot policy of individual tax deferred commercial pension insurance in a smooth and orderly manner. Pilot insurance companies should strengthen policy interpretation, do a good job in related services, and maintain stable business operations.