As China confronts an aging population, life insurers like China Life Insurance Co. Ltd. and Guomin Pension & Insurance Co. are expanding services to meet the financial needs of the elderly through innovative pension finance.
This strategic shift follows the 2023 Central Financial Work Conference, which spotlighted pension finance as a pillar of high-quality growth in China’s financial sector, alongside areas like green and digital finance.
"China Life places great emphasis on the development and layout of pension finance and has played a significant role in the development of the country's three-pillar old-age insurance," said Hong Mei, general manager of China Life’s Strategic Planning Department.
China Life's offerings now include commercial pension, health, and accident insurance, collectively building reserves of approximately 4 trillion yuan (US$562 billion) for multi-layered elderly care needs.
According to Yuan Xin, vice president of the China Population Association, this focus on pension finance reflects a national shift to address economic stability for the elderly.
China’s pension structure, with three layers covering national pension programs, enterprise annuities, and commercial pension plans, has seen growing participation. By mid-2024, over 60 million people had registered for private pension accounts under a voluntary, market-driven government program, according to data from the Ministry of Human Resources and Social Security.
At the recent Financial Street Forum 2024 in Beijing, industry experts highlighted the role of digital integration in advancing elderly care. Supporting this shift, China Life recently established 17 retirement communities across 14 cities, which are funded by health and pension reserves totaling 70 billion yuan.
In parallel, Guomin Pension & Insurance Co. has rolled out the "ZHAO QIAN SUN LI" Personal Retirement Planning Service Platform, a digital tool that assesses individual financial health and recommends elderly care products. As of September, it had served more than 100,000 individuals. The company also secured a 2% investment from Allianz Global Investors GmbH, signaling foreign confidence in China’s pension market.
These initiatives align with new State Council guidelines released in September, which call for the sustainable growth and modernization of the insurance sector.
“To be able to provide quality pension finance products and services in the long run, insurance companies should firmly hold the bottom line of compliance, maintain strategic resolve, and integrate their own high-quality development with the overall pension finance sector,” Guomin chief actuary Cao Yong said.
