China is trying to improve its social security system by encouraging the establishment of pension insurance companies, and insurance companies are urged to take the opportunity to push forward the business.

"Insurance companies should grasp the God-given opportunities to develop the commercial pension insurance," Wu Dingfu, president of the China Insurance Regulatory Commission (CIRC), said during a pension seminar Friday, quoted by Saturday's China Daily.

At the moment, Pacific Pension Insurance Company and Ping An Pension Insurance Company received the green light from the CIRC, the national insurance watchdog, to set up businesses. They are expected to start operating next year.

China Life Insurance Company, the nation's biggest life insurer, also plans to run a pension insurance company with its parent business and investors. It is in the process of getting approval from regulators before it applies for a trustee licence.

Wei Yingning, vice-president of CIRC, said insurance companies have a big role to play in pension fund management.

"Insurance companies have rich experiences in assets-liabilities management and boast solid actuarial techniques, which ensure a comparatively safe capital management," said Wei.

Wei's viewpoint is echoed by Wang Guojun, a professor at the University of International Business and Economics.

"Different from other investments, safety is the primary concern when managing the pension fund," Wang said.