Overseas insurance companies are welcome to take part in the pension business to improve the sector's overall management and expertise. Chinese insurers should bring their foreign counterparts, especially those strong in the pension business.

Since insurance companies' strength is actuarial science, investment and account management, they should play a bigger role in annuity business, he said. At present there are three professional pension firms: Ping An, Taiping and China Life.

The special interest in the industry reflects the rapid growth liability insurance - a record 24.3 percent in 2006, with premiums exceeding 5.6 billion yuan. Last year's total premium was 564.1 billion yuan, 14.4 percent more than in 2005.