China mulls over catastrophe insurance plan
Regulators have urged the government of China to establish a national catastrophe insurance plan after recent disasters revealed non-insurance continues to plague the nation.
Speaking at a Beijing conference last week, China Insurance Regulatory Commission Vice Chairman Wei Yingning said a national catastrophe insurance fund could incorporate both state and private funding.
He says the Chinese Government would be required to provide some form of reinsurance scheme where losses exceed acceptable limits for commercial insurers.
Insurance typically covers just 5% of losses from natural disasters in China, compared to an average of 30% in developed nations.
Swiss Re statistics for last year reveal severe winter snowstorms in China combined with the massive Sichuan earthquake produced more than $US106 billion ($162 billion) in losses, with a mere $US1.9 billion ($2.9 billion) covered by insurance.
Speaking at a Beijing conference last week, China Insurance Regulatory Commission Vice Chairman Wei Yingning said a national catastrophe insurance fund could incorporate both state and private funding.
He says the Chinese Government would be required to provide some form of reinsurance scheme where losses exceed acceptable limits for commercial insurers.
Insurance typically covers just 5% of losses from natural disasters in China, compared to an average of 30% in developed nations.
Swiss Re statistics for last year reveal severe winter snowstorms in China combined with the massive Sichuan earthquake produced more than $US106 billion ($162 billion) in losses, with a mere $US1.9 billion ($2.9 billion) covered by insurance.