Xin Hua Wang·2025-08-12 06:30Core Viewpoint - The expansion of the exclusive commercial pension insurance pilot program to nationwide coverage allows pension insurance companies to participate, marking a significant step for the insurance industry in engaging with the third pillar of pension systems [1][2]. Group 1: Expansion of Pilot Program - The China Banking and Insurance Regulatory Commission (CBIRC) announced that starting March 1, the pilot program for exclusive commercial pension insurance will expand to all regions in the country [2]. - Previously, only six insurance companies were involved in the pilot, but now pension insurance companies are also permitted to participate, which is seen as a crucial opportunity for the industry [2][3]. Group 2: Participation of Pension Insurance Companies - Several pension insurance companies, including Ping An Pension and Taikang Pension, have expressed intentions to actively participate in the pilot program [2]. - Companies are focusing on developing products tailored for unconventional employment groups, such as gig economy workers, and are preparing to align their resources with the upcoming third pillar policy [2][3]. Group 3: Advantages of Pension Insurance Companies - Pension insurance companies have advantages in developing individual tax-deferred commercial pension insurance due to their experience since 2018 [3]. - They can integrate second and third pillar pension products, leveraging their roles as trustees and investment institutions for second pillar annuities [3]. - The existing expertise in group insurance, particularly for unconventional employment groups, positions pension insurance companies favorably in this new market [3]. Group 4: Challenges for Non-Contractual Insurance Companies - Many pension insurance companies, such as China Life Pension and New China Pension, have not previously engaged in contractual insurance and will need to establish new systems and processes to enter the exclusive pension insurance market [4][8]. - The transition from a pension management focus to a contractual insurance model requires significant restructuring of business operations and compliance with different regulatory frameworks [8][9]. Group 5: Product Development and Market Positioning - There is no significant difference in product offerings between pension insurance companies and life insurance companies in the exclusive commercial pension insurance space, although pension companies may have a long-term focus on retirement-related products [6]. - The pilot program has seen a steady operation since its inception, with nearly 50,000 policies and a total premium of 400 million yuan by January 2022 [6][7]. - Despite the potential, the overall scale of the exclusive commercial pension insurance remains small compared to the vast premium volumes of life insurance companies [7]. Group 6: Regulatory Guidance and Future Directions - The CBIRC has issued guidelines to promote the development of commercial pension insurance and related services, requiring pension insurance companies to submit their business transformation plans by June 30 [9]. - This regulatory push aims to clarify the future direction of pension insurance companies and enhance their engagement in the commercial pension insurance market [9].