1st insurance trust product launched in China
- By Guo Xiaohong
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E-mail China.org.cn, May 5, 2014
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CITIC Trust and CITIC Prudential Life Insurance Company Limited held a press conference for its collaboration on life insurance trust in Beijing, May 4, 2014. |
CITIC Group launched a new finance product, a life insurance trust, for its high-end customers yesterday in Beijing.
The product, the first of its kind in China, was jointly developed by two companies under the CITIC Group, CITIC Trust and CITIC Prudential Life Insurance Company Limited.
This insurance trust product allows high net worth families to have more control over life insurance compensation, said Liu Xiaojun, the project manager from CITIC Trust. CITIC Trust will hold and manage the assets or compensation as a third party on behalf of an insurance beneficiary or beneficiaries.
The product offers greater security and is tailored to the long-term, individual needs of policy holders, said Liu.
China’s financial portal website hexun.com said the high net worth population with investment assets of 600 thousand to 6 million yuan has hit 11.97 million and the figure will climb to 14.01 million by the end of this year.
Statistics from the Chinese Trustee Association showed that the annualized proceeds rate of China's trust products was 6.44 percent in the first quarter of 2014, lower than the annual proceeds rate of 7.4 percent last year, and the assets entrusted to Chinese trust management hit 11.73 trillion yuan ($1.87 trillion) by March 2014.
Liu Xiaojun said fierce competition and China’s liberation of interest rates has forced the trust business to innovate and provide higher quality.
This collaboration between CITIC Trust and CITIC Prudential signals another vanguard move and bold step by CITIC Trust in China’s finance market. Before that, CITIC Trust took the lead in China by issuing a rural land trust product, consumption trust and heath care fund.
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