, China

China removes cap on life insurance interest rate

Strengthens market-oriented reforms in its financial system.

The China Insurance Regulatory Commission (CIRC) has eased controls on interest rates for standard life insurance products by removing starting today the 2.5% upper limit on pre-determined interest rates of standard life insurance products.

Under the new insurance regulation, insurance companies can set their own rates in line with prudent principles. For risk prevention purposes, however, a new cap of no more than 3.5% will be applied for the statutory reserve requirement assessment ratio of standard life insurance products.

The measure represents China's newest effort in interest rate liberalization, following the People’s Bank of China’s key move on July 19 to loosen its grip on bank lending rates.

Official CIRC data show that the assets of China's insurance industry totaled US$1.27 trillion in June, up 7.2% from the level in 2013.

The rigid 2.5% cap, made valid since 1999, has resulted in severe homogeneity in life insurance products.


 

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

What is Lorem Ipsum?
What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Exclusives

Sed molestie interdum dui sit amet egestas
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.