Preferential policies introduced for more insurance products

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China has extended coverage of individual income tax preferential policies to more major commercial health insurance products such as medical insurance, long-term care insurance and disease insurance, the National Financial Regulatory Administration announced on Thursday.

According to a circular issued by the administration, the authorities will no longer design standardized clauses for such insurance products so they will fully consider consumers’ needs to improve flexibility.

Set insurance requirements will only be applicable to people who have pre-existing health conditions, and the design of the rest of the insurance clauses will be decided by market players.

In view of insufficient insurance protection for people with pre-existing medical conditions, the circular also said insurance companies should cover them with and can design different insurance programs to offer higher coverage limits and more obligations on insurers.

Insurance companies are also encouraged to develop long-term care and disease insurance products for seniors and people with pre-existing disease conditions.

The adjustments promote commercial health insurance products applicable to individual income tax preferential policies to benefit more people, and enhance the interplay of different medical security programs, the NFRA said.

They will also effectively reduce people’s disease expense burdens, and improve insurance protection for people with pre-existing health conditions and the elderly, it said.