The survey, by the Development Research Centre (DRC) of the State Council, polled 22,182 families in 50 cities. Only 6 percent of those families said they had enough insurance knowledge, while 36 percent said they knew little about insurance.

DRC expert Lu Renbo said on Wednesday the survey showed Chinese citizens choose to save money in banks or to pay for house loans. Only 9 percent of consumers chose to invest in commercial insurance.

Lu attributed this to the fact that China's insurance market still needs cultivation, plus the lack of advertising of insurance products by companies.

However, Chinese people need insurance to minimize the risks associated with the pressures of work, study, and medical care, which creates great potential for China's insurance market.

To raise satisfaction rates, experts suggested that the insurance sales process become more innovative. In addition, improving transparency during sales and compensation procedures was identified as a key issue in the market.

Premiums paid can be seen as a contribution to others, and as allowing investors to be compensated when accidents happen.

Policy holding can be divided into three phases: safeguarding, financing and investing. Most Chinese buyers are still in the first phase.

( Xinhua News Agency August 15, 2002)