The China Banking and Insurance Regulatory Commission (CBIRC) recently issued the Notice on Expanding the Exclusive Commercial Pension Insurance Pilot Programs (hereinafter referred to as “the Notice”), which will expand the pilot programs of exclusive commercial pension insurance nationwide and also allow pension insurance companies to participate in the pilot programs.

Since the launch, the exclusive commercial pension insurance pilot programs have been running smoothly and well received by the public. By the end of January 2022, the number of insurance policies issued by the six pilot companies reached nearly 50,000 with a total premium of RMB 400 million, of which nearly 10,000 policyholders were from new industries and new business formats, such as couriers and ride-hailing drivers. The characteristics of exclusive commercial pension insurance such as easy application, flexible payment and steady return have been gradually understood and accepted by consumers. Insurance companies have preliminarily formed a business model commensurate with their own features, and especially have accumulated experience in serving people from new industries and new business formats and those that are flexibly employed. Expanding the pilot programs can increase access to exclusive commercial pension insurance products with strong pension functions for more consumers, and further cultivate the concept of pension finance. Also, it is conducive to encouraging pilot insurance companies to explore in-depth experience of commercial pension insurance, and promoting and regulating the development of the third pillar of pension insurance, so as to better meet people's multi-tiered pension needs.

The Notice stipulates that from March 1, 2022, the pilot programs of exclusive commercial pension insurance will be expanded nationwide, and pension insurance companies will be allowed to participate in addition to the original six insurers.

The Notice emphasizes that pilot companies should reasonably develop business plans, continue to innovate products and explore ways to meet the diversified needs of people from new industries and new business formats and those that are flexibly employed, while requiring the CBIRC local offices to be responsible for policy interpretation and strengthened business supervision. After the expansion of the pilot programs, the corresponding regulatory requirements shall be subject to the provisions of the Notice of the General Office of CBIRC on Exclusive Commercial Pension Insurance Pilot Programs.

Appendix: Notice of the General Office of CBIRC on Expanding the Exclusive Commercial Pension Insurance Pilot Programs