China's Banking and Insurance Regulatory Commission (CBIRC) has launched a set of new rules to regulate the booming insurance sector and encourage insurance firms to develop more long-term medical insurance policies and products.
The CBIRC said that insurers will now be allowed to develop and sell long-term insurance schemes that can vary charges under some well-defined conditions. The new rules seek to specify how insurance companies can invest asset management funds.
The new rules are designed to encourage insurance companies to develop longer-term medical cover products and insurance packages.
According to a statement on the CBIRC's website, the rules will also stipulate the qualifications needed to invest in such insurance products.
Last year, sales of China's medical insurance products increased to $34.44bn, a rise of 32% on 2018.
As of 2018, China had 203 life insurance companies registered. The regulations take effect on 1 May.