The State Council, China's cabinet, on Wednesday discussed and approved a national emergency response draft during an executive meeting on reforming the country's insurance industry.

During the meeting chaired by Premier Wen Jiabao, the participants said the draft is necessary to help China prevent and reduce natural disasters, accidents and public health epidemics.

The draft has been submitted by the State Council to the Standing Committee of the National People's Congress, the country's parliament, for discussion and approval.

During the meeting, the participants also discussed other issues related to the insurance industry, saying that the sector's development is not compatible with the building of a "well-off" and "harmonious society" despite the remarkable achievements it has made in recent years.

With the fast growth of China's economy, the participants said, ordinary people have a deeper understanding and better knowledge about insurance. Their demand for insurance is increasing.

Insurance companies should try to establish a market-oriented system, remain honest and put people first, they said.

The main tasks facing the industry at present are to develop pensions and health insurance in urban and rural areas to improve China's social security system.

Efforts should also focus ensuring production safety, the participants said.

Insurers are also urged to deepen reforms and better prepare themselves to open up further to foreign competition, they said.

Source: Xinhua