China to launch cheaper rural life insurance

The China Insurance Regulatory Commission announced recently that China will launch cheaper life insurance for farmers. Sun Jiayu finds that companies are focusing on insurance to cover accidental injuries and sickness.

According to the survey conducted in China's middle-west regions, CIRC found that over three fourths of farmers in these areas heard about insurance before, but less than 30 percent of them bought the insurance. CIRC decided to kick off a cheaper life insurance covering these areas including nine provinces such as Sichuan, Gansu, Qinghai and Heilongjiang.

The insurance scope covers disease, deformity and death. Farmers can get insurance guarantees for 10 to 50 thousand yuan when they pay the minimum premium of less than 100 yuan for a year. CIRC requires all claim procedures to be simplified. Currently, domestic insurance giants such as China Life, PingAn Insurance and Pacific Insurance have set up development schemes. The first insurance slip is expected to come out at the beginning of July.