Australian insurers are among those the China Insurance Regulatory Commission has approached for advice on setting up a disaster response scheme to protect insurance policyholders.

Natural disasters cost China about $23 million a day. It is regarded as one of the most disaster-prone countries in the world. At present rebuilding after a disaster is mostly paid for by the Government and private donors.

Liu Jingsheng, an official with the commission, told an earthquake conference last week that his country has sought the advice of Australian, European, and US insurers on ways to develop such a scheme. China “is yet to forge a sophisticated and complete catastrophe insurance system”, he said.