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CIRC may Loosen Assumed Interest Rate Control on Traditional Life Insurance

By AnJie Broad on August 17, 2010
Posted in Insurance Law

On July 9, China Insurance Regulatory Commission (“CIRC”) issued a notice concerning assumed interest rate on traditional life insurance to solicit public opinion. Some analysts said CIRC proposes to loosen its control over the assumed interest rate through this notice and expected that the profits margins of traditional life products will shrink following the implementation of this proposal, while insurers will have more flexibility in the design of this kind of policies.

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