Newly revised law allows insurers to invest in property

Mar. 3, 2009 (China Knowledge) - China's top legislature on Saturday approved the newly revised insurance law, which permits insurance companies to invest in property.

China Insurance Regulatory Commission (CIRC), the country's insurance regulator, will release the specific regulations defining what proportion of the total assets insurance companies are permitted to invest in property by Oct. 1, when the newly revised law comes into effect, said Yang Huabai, director general of CIRC's legal affairs department at a briefing on Monday.

The total assets of insurance companies had reached RMB 3.38 trillion as of the end of January 2009. It is expected that at least RMB 100 billion will be invested in the real estate market as a result of the new policy.

The new law includes other measures to control and protect insurers, and imposes new qualification requirements for their shareholders and chief executives.