It is understood that the original "Insurance Law" stipulates that property insurance companies cannot engage in life insurance business. However, in life insurance business, accident insurance and short-term health insurance have the same compensation nature and actuarial basis as property insurance, and most countries allow non-life insurance companies to operate these two types of insurance. Recently, the 30th meeting of the 9th the National People's Congress Standing Committee (NPCSC) adopted a decision on amending the insurance law. The revised Insurance Law refers to international practice and stipulates that property insurance companies can engage in accident insurance and short-term health insurance business after being approved by the regulatory authorities.
Some commentators believe that property insurance companies operating accident insurance and short-term health insurance business can promote the normal competition of the insurance industry and benefit consumers.
The Insurance Law (2009 edition) stipulates that:
Chapter IV Insurance Operating Rules
Article 95 The business scope of an insurance company:
(1) Personal insurance business, including life insurance, health insurance, accident insurance and other insurance business;
(2) Property insurance business, including property loss insurance, liability insurance, credit insurance, guarantee insurance and other insurance businesses;
(3) Other insurance-related businesses approved by the the State Council Insurance Regulatory Authority.
An insurer may not concurrently engage in life insurance business and property insurance business. However, insurance companies engaged in property insurance business may engage in short-term health insurance business and accidental injury insurance business with the approval of the State Council Insurance Regulatory Authority.
An insurance company shall engage in insurance business activities within the business scope approved by the the State Council Insurance Regulatory Authority according to law.