China to accelerate development of insurance sector

In a bid to stimulate innovation and entrepreneurship, Chinese government Wednesday vowed to improve insurance services.

It has been felt that faster development of the sector will optimise the economic structure and promote innovation in social governance, reported Xinhua citing a statement released following a meeting of the Chinese cabinet or, the State Council.

It said the insurance and social security systems will be integrated, making commercial insurance a major pillar of social security.

Competent insurance companies have been encouraged to roll out commercial pension and health care plans, to invest in the old-age pension industry, participate in the integration of the health sector and develop new products.

Insurance will be incorporated into the disaster and accident prevention and alleviation system. It will also reinforce industrial upgrades, support agriculture and insurance funds will be encouraged to invest in urbanization, infrastructure and residential renovations.

The State Council also decided to exempt new energy cars from a 10percent purchase tax from September.

Draft amendments to some laws were approved by the meeting to offer legal foundation for streamlined administrative approval procedures.