“The commercial pension care insurance, similar to social security fund, comes from people’s pocket. All insurance organs must ensure its security,” Premier Li said during the State Council executive meeting on June 21.

The meeting decided to speed up measures in the development of commercial pension care insurance to improve the social insurance system and provide basic health care for the elderly.

“To make people purchase the insurance, the government should regard safety as a priority while lowering their expectations on payback and following the rules of operation,” said the Premier.

Premier Li added that the development of such an industry should stick to market principles while providing individualized and differentiated health care services, in order to attract people to voluntarily purchase the products.

For a nation with over 1.3 billion people and annual labor increase of over 15 million people, employment is becoming more flexible as new modes spring up.

Along with this development is the aging population. Data shows China has more than 200 million elderly over 60 years old.

To adapt to the aging population and new employment trend while satisfying people’s increasing demands for pension insurance, efforts should be made to improve the social pension system. Commercial pension insurance is an important part of such system, the Premier said.

According to the Premier, government organs should implement financial and taxation policies to support insurance and the elderly care service industry, accelerate commercial pension insurance trials, encourage commercial pension insurance institutions in basic pension insurance fund and investment management, and offer commercial pension insurance capital with quick and convenient service.

Efforts should also be made to enhance supervision, improve insurance institutions’ services and protect consumers’ legal rights, he added.

Commercial pension insurance is significant to people’s lives and the nation’s development. All government departments should work together to support the development of commercial pension insurance, according to the Premier.