China’s commercial endowment insurance services to expand to meet increasing demand

The programme will become a regular business operation.

China is expanding its commercial endowment insurance services to meet the growing demand for elderly care, Xinhua News Agency reported.

This expansion comes after a pilot program launched in Zhejiang and Chongqing in 2021 and was expanded nationwide in 2022. 

READ MORE: China to expand scope of commercial endowment insurance services

The programme will now be a regular business operation for qualified life insurance companies. 

To be eligible, insurance companies must have owner's equity at the end of the previous year not less than $696.5m and not less than 75% of the company's share capital. 

ALSO READ: China could face $4.6t in economic losses if extreme weather conditions persist in five years

Qualified insurers can work with large banks, joint-stock banks, and city commercial banks to promote and sell commercial endowment insurance products within their operating areas. 

This move reflects China's efforts to address the growing financial needs associated with its ageing population.