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The State Council on Wednesday discussed and approved a national emergency response draft at an executive meeting on reforming the country's insurance industry.

During the meeting chaired by Premier Wen Jiabao, participants said the draft was necessary to help China prevent and reduce natural disasters, accidents and public health epidemics.

The draft has been submitted by the State Council to the Standing Committee of the National People's Congress (NPC) for deliberation and approval.

During the meeting, participants also discussed other issues relating to the insurance industry. They noted that the sector's development was not compatible with the building of a "well-off" and "harmonious society" despite its remarkable achievements in recent years.

With China's economy growing so rapidly, ordinary people have the opportunity to gain a better understanding and knowledge about insurance. Moreover, their demand for insurance continues to grow.
 
Therefore, insurance companies should establish a market-oriented system, be honest and put people first.

The industry's main tasks for now are to develop pensions and health insurance schemes in urban and rural areas to improve China's overall social security system.

Efforts should also focus on ensuring production safety.

Insurers were also urged to deepen reforms and better prepare themselves for competition from international players.

(Xinhua News Agency June 2, 2006)