Chinese regulators have implemented the country’s first national standard for the insurance industry, which seeks to boost the development of the second-largest insurance market in the world.
The national standard is composed of 817 entries, and sets fundamental definitions of various insurance industry terms, according to the China Banking and Insurance Regulatory Commission (CBIRC).
The standard was released in September 2018 and distributed throughout China’s insurance sector, before coming into effect in April, Xinhua reported. It covers all areas of the Chinese insurance market, including terminologies used in insurance policies, contract management, compensation, marketing, and sales.
CBIRC said that the national standard will help consumers better understand products and services provided by insurance companies, as well as clarify communications and promote cooperation among industry players.
China’s insurance industry has seen rapid growth in recent years. In 2018, gross premium income across the insurance sector totalled RMB3.8 trillion (US$567 billion), up 3.92% year on year. China is predicted to become the world’s largest insurance market by the mid-2030s.
