Vice Premier Wang Qishan: insurance sector needs reform and innovation

Chinese Vice Premier Wang Qishan has urged the accelerated reform and innovation in the country’s insurance industry to promote healthy and stable development.

During an inspection to Shanghai on Friday and Saturday, Wang said the insurance industry was faced with great potential and opportunities amid accelerated process of industrialization and urbanization.

However, the industry development was still at primary stage, and needs to take an explorative steps to improve its systems, he said.

Wang stressed greater efforts should be made to develop pension, medical and liability insurance. The agriculture-related and shipping industries, small-sized and technology-based business should receive better insurance services.

Insurance companies should also apply prudent oversight and keep adequate capital reserve to guard against systematic risks. Fraudulent and misleading insurance sales should be cracked, he noted.

By the end of January, the country’s insurance industry had a total of 6.03 trillion yuan (957.1 billion U.S. dollars) in assets. The premium revenue totaled 1.43 trillion yuan in 2011, up 10.4 percent year-on-year.

Xinhua