Shanghai is to enhance the role of insurers in improving public welfare and boosting the city's shipping industry, the local regulator said yesterday, citing the new five-year plan for the city's insurance sector.

The Shanghai Bureau of the China Insurance Regulatory Commission said it will launch tax-deferred pension insurance once it is supported by policy changes at state level.

This type of insurance involves tax relief on premium payments. Income tax is paid later when the pension is drawn down.

A commission official said: "We plan to launch the insurance on a trial basis within the next five years, but it cannot be done without preferential tax policies to allow deferred payment."

Insurers will be encouraged to use the income from premiums to invest in building infrastructure and public housing in Shanghai, the regulator said.

Insurers will also place an emphasis on developing shipping insurance and will make moves to join international insurance organizations to promote the city's position as a global shipping hub.

According to the five-year plan guiding the development of Shanghai's insurance sector until 2015, premium income will double over the period.

Total premium income in Shanghai was 63.7 billion yuan (US$10 billion) in the first 10 months of this year, the regulator said.

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