China promotes micro-insurance to cover rural areas
Updated: 2008-01-16 20:19
The per capita net income for rural residents was expected to surge by 7 percent to stand at 4,000 yuan in 2007, according to Chinese officials, however, it still fell short of more than 10,000 yuan on average for urbanites.
China Life covered 1.2 million farmers with such life insurance in 2007, according to the CIRC.
There were also other micro-insurance products specifically targeting different sectors, such as planting, livestock breeding, farmers' houses, farm machinery, farmers' household property, as well as micro medical insurance and insurance against micro-loans, a practice adopted in rural areas to provide more financial products there.
At present, both government agencies and commercial insurance companies were involved to improve insurance coverage in rural areas, according to Chen Wenhui, CIRC's chairman assistant.
More than 90 percent of life insurance products were provided and managed by commercial insurers.
The new cooperative medical insurance and family planning insurance were provided by government agencies and commercial companies were only responsible for managing the fund collected.
"Joint efforts of government and companies were multilaterally beneficial to parties involved," Chen said, "The government was partly relieved from pressure to extend insurance coverage for low-income people; insurance seekers were better guaranteed due to involvement of government agencies; and insurers were able to tap the market potential."
He said the commission would also learn from international practices to boost micro-insurance in rural areas.
The commission kicked off an international seminar on micro-insurance on Wednesday, with more than 250 senior insurance managerial staff and regulatory officials from 20 countries and regions attending the conference.
Li made the comment while addressing the conference.
|
|
|
||
|
||
|
|
|
|