The Role of Insurers in Developing the Third Pillar of China's Pension System

September 2023

Authors:

Mengyi Xu, PhD, FSA, FIAA
Assistant Professor
Department of Statistics and Department of Mathematics, Purdue University
United States

Kerwin Gu, MPhil, FSA, FIAA
Partner
Baker Tilly China
Beijing, China

Adam W. Shao, PhD, FSA
Research & Development Actuary
SCOR Global Life
Singapore

Description

China's pension system is facing funding challenges as a result of changing demographics. The first pillar, which relies on contributions from current workers, is particularly vulnerable to an aging population. While the second pillar has shown some growth, its limited coverage cannot fully bridge the funding gap of the first pillar. The third pillar presents a potential solution to enhance the financial sustainability of China's pension system. In this context, actuaries play a crucial role in advancing the third pillar. Our research aims to provide valuable insights and recommendations that can optimize the participation of insurance companies, enhancing the long-term sustainability and effectiveness of China's pension system.

Materials

The Role of Insurers in Developing the Third Pillar of China's Pension System

The Role of Insurers in Developing the Third Pillar of China's Pension System – Simplified Chinese

The Role of Insurers in Developing the Third Pillar of China's Pension System – Excel Tool

Podcast

The Role of Insurers in Developing the Third Pillar of China’s Pension System

Thank You

The researchers’ deepest gratitude goes to those without whose efforts this project could not have come to fruition: the Project Oversight Group and others for their diligent work overseeing questionnaire development, analyzing and discussing respondent answers, and reviewing and editing this report for accuracy and relevance.

Project Oversight Group members:

Kai Chen, PhD, ASA
Jiangang He, FSA, FCIA
Qi Li, FSA
He Wang, PhD
Min Zhang, FSA

At the Society of Actuaries Research Institute:

R. Dale Hall, FSA, CERA, CFA, MAAA
Jessie Li, FSA
Xiao Xu, FSA, CERA, FIAA, CFA, FRM, CA, CPA, PhD

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