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Amended Law to Promote Insurance Industry:CIRC Chairman
The amended Insurance Law will help promote the development of the insurance industry, China Insurance Regulatory Commission Chairman Wu Dingfu said Tuesday.

China's legislature the National People's Congress Standing Committee adopted an amendment to the law Monday.

Wu noted that the amendment removed the rigid requirement on re-insurance for non-life insurance business, to make it in line with China's commitments on entry to the World Trade Organization.

The amendment also allows insurance companies to decide the provisions and rates for their products, ending the practice of the regulatory commission setting the rates.

With the amendment in force, property insurance companies will be allowed to sell accident and short-term health insurance policies, which were solely undertaken by life insurance firms.

The revised law also eases restrictions on insurance companies in investing their revenues, although they are still banned from running securities firms and other businesses.

The CIRC chairman said he believed the amended law will improve regulation of the industry and step up the integration of Chinese insurance industry and the world market.

China promulgated its Insurance Law in 1995. The amendment to the law goes into force on Jan. 1, 2003.

(Xinhua News Agency October 30, 2002)

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