Rural life insurance rules to be tightened
(China Daily)
Updated: 2006-09-07 13:41
China's insurance watchdog is preparing to release new rules to regulate and
promote the development of life insurance in rural areas.
"The rules will probably be made public at the end of this month or early
October," said Gong Yisheng, director of the system department of the China
Insurance Regulatory Commission (CIRC).
Gong disclosed that the threshold for insurers' entry into rural areas will
be even higher than for cities, due to the fragility of the rural market.
For instance, the insurer should have outlets in local markets to ensure
service for rural residents. And they will not be allowed to flee the rural
market at will.
"All these measures aim to maintain a good environment for insurance
development in rural areas," Gong added.
With the 'word of mouth' phenomenon particularly strong in rural areas,
misleading sales or unreasonable refusal of claims will result in mass
reimbursement demands, thus damaging the local insurance market, he explained.
...
The full text is available in the September Issue of China Insurance
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