BEIJING -- The Beijing Insurance Research Institute (BIRI), a think tank devoted to the insurance industry, was established on Saturday to support the reform of China's insurance sector.

Xiang Junbo, head of the China Insurance Regulatory Commission (CIRC), said at an unveiling ceremony that the think tank's establishment is a "necessary requirement" for deepening the insurance sector's reform.

The BIRI, co-founded by the Insurance Association of China and China Insurance Information Technology Management Co., Ltd., will provide suggestions for major policy and mechanism design at the CIRC, the institute said in a statement.

Strategic thinking is needed to develop an insurance sector that not only "compensates" the real economy, but also plays a role in restructuring the economy, building a safety net for people's livelihood, and transforming the functions of the government, Xiang said.