Life insurance products should be more diverse to enhance risk control, a senior insurance regulatory official has said.
Access to market, early intervention and a fool-proof withdrawal mechanism are three prerequisites for preventing potential risks, said Mr Huang Hong, CIRC Vice Chairman at a forum held earlier this month.
"However, products of some insurers are too homogenised with a short duration, which may bring risk," he said. "Insurers should construct a multi-level and widely covered structure to help cultivate a healthy market."
Since March last year, the CIRC has tightened sales of insurance products with a medium or short duration. Its rules stipulate that insurance policies with a term of less than one year is not allowed at all. The proportion of policies with a tenure of one to three years should be limited to 50% of the total by 2019.
Mr Huang also said that insurance companies should optimise their ownership structure, improve incentives and risk control mechanisms. He added that technology, including the Internet, big data and artificial intelligence, should be adopted in developing insurance-related products, services and management.