Insurance-based trust launched

CITIC-Prudential Life Insurance Co signed a deal on Monday with CITIC Trust Co to launch a trust, with the policy to be the target, as they eye business opportunities among high-end clients.

This is the country's first trust based on insurance coverage. The clients of such trusts will be policyholders with an insurance coverage higher than 8 million yuan ($129,000)

According to Bao Hongjian, chief marketing officer of CITIC Prudential Life Insurance Co, money will enter into the trust when claims are settled, otherwise the money will reside in the insurance company.