The Shanghai Securities News has reported that China’s insurance regulator is working at constituting special regulations on managing the pension insurance business.
Liang Tao, director of the China Insurance Regulatory Commission personal insurance regulatory department has said the move will ensure insurance companies that handle corporate annuities are able to pay expired debts and future liabilities, avoiding risks during managing annuities and protecting the beneficiary’s legitimate rights and interests.
The Ministry of Labour and Social Security’s (MLSS) statistics show that the corporate annuity fund, coving 9.64 million people, had 91 billion yuan in assets in 2006 with only 15.8 billion yuan of that (17%) being managed by professional investors.
30 financial institutions are currently designated as custodians, trustees and asset managers for corporate annuity management. Next month will see a new round of campaign for granting qualifications required for the annuity management will be launched next month.
Liang has suggested that those pension insurers and life insurance companies which plan a movie 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 risks and costs.
China’s enterprises annuity will add 50 billion yuan (US$6.62 billion) annually in five to ten years, a recent survey revealed.
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