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CIRC Grants Consensus To Chinese Insurers To Establish Investment-linked Insurance Accounts

The consent of investment-linked insurance accounts would facilitate insurers to sell their products in larger quantity

China Insurance Regulatory Commission (CIRC) has approved four Chinese insurance companies to establish investment-linked insurance accounts. They are: China Life Insurance, Greatwall Life Insurance, CITIC-Prudential Life Insurance and Pacific-Antai Life Insurance – reported iStockAnalyst.

The consent of investment-linked insurance accounts is expected to facilitate insurers to sell their products in larger quantity, in view of the bullish stock market.

The insurers are expected to gain from medium-and-long-term bond assets. The yield of medium-and-long-term bonds would gradually rise alongside the economy, growing inflation expectations and the supply-demand relation in the bond market.

Wang Xiaogang with Orient Securities, stated that the launch of investment-linked insurance products will have limited impact on insurers’ overall investment yields, as premiums from such products only account for a small proportion of the total.