Chinese President Xi Jinping welcomes Iran's President Ebrahim Raisi to Beijing on Tuesday. AFP
Chinese President Xi Jinping welcomes Iran's President Ebrahim Raisi to Beijing on Tuesday. AFP
Chinese President Xi Jinping welcomes Iran's President Ebrahim Raisi to Beijing on Tuesday. AFP
Chinese President Xi Jinping welcomes Iran's President Ebrahim Raisi to Beijing on Tuesday. AFP

Chinese leader Xi Jinping pledges support for Iran over nuclear issue


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Chinese President Xi Jinping has pledged to support Iran in its push to find a proper resolution to its nuclear issue.

Mr Xi told Iranian President Ebrahim Raisi on Tuesday that Beijing backed the protection of Tehran's rights and the early resolution of the issue as Mr Raisi began a three-day state visit to China.

It is the first state visit to the country by an Iranian president in more than 20 years.

“China will continue to constructively participate in the negotiations on resuming Iran's nuclear agreement,” Mr Xi said.

Mr Xi hailed Beijing's “solidarity” with Iran during the meeting.

“In the face of the current complex changes in the world, times, and history, China and Iran have supported each other [and] worked together in solidarity and co-operation,” state broadcaster CCTV quoted him as saying.

The Iranian leader received a red carpet greeting, with 21 cannons fired and the national anthems of Iran and China played during the welcoming ceremony, Iranian state media Irna reported.

Mr Raisi walks with Mr Xi during a welcoming ceremony in Beijing. Wana/Reuters
Mr Raisi walks with Mr Xi during a welcoming ceremony in Beijing. Wana/Reuters

The visit is designed to boost trade and economic ties between the two countries.

The Iranian delegation in Beijing included Mr Raisi's central bank chief and ministers for oil and mining.

He is expected to sign a number of “co-operation documents”, Tehran has said.

Iran and China have strong economic ties, particularly in energy, transit, agriculture, trade and investment.

In 2021, the countries signed a 25-year “strategic co-operation pact”.

Both countries face pressure from western nations over their positions on Russia's invasion of Ukraine, which started about a year ago, and Iran is already under strict US sanctions due to its nuclear programme.

Iran has emerged as one of Russia's few remaining allies as Moscow has been pushed deeper into international isolation over the invasion.

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Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

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Updated: February 14, 2023, 12:46 PM