Legal Basis For Policy Conversion In China

1. Background

With the further aging of the population, the pension issue has gradually become a focus of attention in CHina, prompting the insurance industry to explore and develop life insurance products with long-term coverage and pension features. Meanwhile, due to the impact of the scheduled interest rate reduction, in addition to developing new products, insurers have also begun to consider converting the coverage of existing life insurance policies to pension annuity or nursing care insurance (hereinafter referred to as "policy conversion").

1. Legal Basis for Policy Conversion

In general, from the legal and compliance perspective, PRC¹ insurance regulator has only enacted regulations on the conversion of life insurance to long-term care insurance and has not clarified whether life insurance can be converted to other types of insurance products. Currently, there are no prohibitive or restrictive regulations stipulated by PRC insurance