Wu Xiaoping, vice chairman of China Insurance Regulatory Commission, said at the "'2000 China International Life Insurance Business Operation and Development Symposium" that life insurance industry in China has been at a crucial stage of transition from traditional life insurance to a period of non-traditional products insurance. Opportunities should be seized to develop risk insurance in China, he urged.
Wu said that life insurance has been developing obviously at a slow pace in China in the past year. The growth rate of premiums is lower than that of the previous year. Facts show that high-interest-rate insurance items involve high risks. In contrast, low-interest items pose no market attraction to customers, where market difficulties will inevitably arise. China's life insurance must tap its internal potentiality.
Primary price competition by insurance companies will be brought to a halt after completion of the transition. New competition will likewise be carried out in management and services.
Life insurance industry in China has been at a crucial stage of transition from traditional life insurance to a period of non-traditional products insurance. Opportunities should be seized to develop risk insurance in China. China's life insurance must tap its internal potentiality.
