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China / Society

China to accelerate development of insurance sector

(Xinhua) Updated: 2014-07-10 09:14

BEIJING -?China on Wednesday vowed to improve insurance services to stimulate innovation and entrepreneurship.

Faster development of the sector will optimize the economic structure and promote innovation in social governance, according to a statement released after a meeting of the State Council, China's cabinet.

The insurance and social security systems will be integrated, making commercial insurance a major pillar of social security, the statement said.

Competent insurance companies are encouraged to roll out commercial pension and health care plans, to invest in the old-age pension industry, participate in the integration of the health sector and develop new products.

Insurance will be incorporated into the disaster and accident prevention and alleviation system. It will also reinforce industrial upgrades, support agriculture and insurance funds will be encouraged to invest in urbanization, infrastructure and residential renovations.

The insurance sector should be a modern corporate system with new market entry and exit mechanisms, advanced practices and technology from abroad, able to export domestic insurance services.

The State Council also decided to exempt new energy cars from a 10percent purchase tax from September.

Draft amendments to some laws were approved by the meeting to offer legal foundation for streamlined administrative approval procedures.

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