Endowment insurance institutions told to boost retirement plan services

Endowment insurance institutions should downsize the types of business whose retirement planning feature is not prominent and stop or divest insurance asset management business that is irrelevant to retirement planning, the China Banking and Insurance Regulatory Commission said on Friday.

The CBIRC said it has issued a notice on regulating and promoting the development of endowment insurance institutions to urge insurance companies and pension management companies to take the path for professional development. Endowment insurance institutions should further highlight their feature of providing retirement planning financial services and clearly define the main directions of their business.

The regulator will promote endowment insurance institutions to focus on the development of the types of business that have a retirement planning feature, such as commercial endowment insurance and the management of enterprise and occupational annuity funds. It will also support endowment insurance companies that meet the criteria to participate in a pilot program of special commercial endowment insurance.

The institutions must improve corporate governance and organizational frameworks, strengthen the construction of information systems, build effective firewalls among different types of business and prevent transference of all kinds of risks, the regulator said.