“China LIFE Insurance, which is the largest insurer in China is to branch out small amounts of life insurance policies in rural areas. Nine provinces in China will be the testing points.
This is good news to China who have felt the effects of the credit crunch. However, China Life Insurance has claimed that it is not involved with the other insurance companies that have been hit by financial struggle.
The nine provinces consist of areas such as Qinghai, Sichuan, Gansu, Henan and Hubei. During the testing period the insurer is allowed to provide nine different types of insurance policies, which will range from personal accident insurance, traffic accident insurance and life insurance. These policies will be sold to both groups and families.
The insurance regulator urges the insurers to expand its coverage as well as explore effective promotional plans to these testing areas.
The CIRC stated that the insurer is not only providing insurance, but it is a way of reporting statistics and materials.”