China has broadened its private pension scheme, allowing large insurance companies to offer individual retirement products to meet the needs of a rapidly ageing population, according to a statement from the regulator, reports the South China Morning Post. The move will see insurers join banks and wealth management firms in the private pension market that will be worth around RMB 10 trillion ($1.5 trillion) by 2030, according to McKinsey & Co.
Insurance companies that want to offer private pension products must have shareholders’ equity of RMB 5 billion or above, with a solvency margin ratio not less than 150% and core solvency ratio not less than 75%, according to a statement issued by the China Banking and Insurance Regulatory Commission (CBIRC) on Tuesday.
“We support the insurance sector to offer a wide range of products to meet the retirement needs of the public,” the statement said.
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