Guo Guangchang, chairman of Fosun International. [Photo/IC]

On Friday, chairman of private Chinese conglomerate Fosun International Ltd Guo Guangchang said China should upgrade its national insurance system to better facilitate and

protect overseas investment by Chinese companies.

Guo, who is also a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said during his proposal for the ongoing annual session of the CPPCC, the country's top political advisory body, "Chinese companies are expecting more support from the national level to protect their overseas investment as they have been directly affected by the uncertainties in the economic situation and the political instability in some countries."

Guo said a government-led insurance system for overseas investment can serve as an effective way to enhance the quality and security of the international projects of Chinese companies.

"The effectiveness of the current insurance system has been challenged as the country's foreign investments soared over the past year," Guo added. He noted that the previous failed investment projects in Mexico and Greece have underscored the urgent need to improve the current system.

In 2015, China's total non-financial outbound investment reached 735 billion yuan ($112.7 billion), up 14.7 percent from the previous year.

In his proposal, Guo said that China should promote a bilateral insurance system for international projects. He added that the government should separate the roles of insurance approval and business operation and to enrich the insurance products for Chinese companies.