China's financial regulator on Friday issued an action plan to boost the high-quality development of the property insurance industry over the next five years.

The plan proposes deepened reforms and advanced opening up in the industry, as well as accelerated business transformation and upgrading, according to the National Financial Regulatory Administration.

The plan supports qualified overseas financial institutions to invest in China's property insurance market, encourages eligible Chinese property insurance companies to optimize their global presence, and supports the high-quality development of foreign-funded property insurance companies in China.

It pledges to expand exchange and cooperation within domestic and international reinsurance markets, and says that ways to promote the mutual international recognition of regulatory rules and property insurance business connectivity should be explored.

It also highlights the need to improve mechanisms related to the prevention, defusing and disposal of risks, and the need to diversify risk defusing and disposal methods, according to the financial regulator.