Companies Ignoring Commercial Property Insurance
Diwang Mansion, one of the tallest skyscrapers have a property insurance premium of 100,000 yuan per year. Even when a single pane of glass window cost 50,000 yuan alone. The city insurance regulatory bureau said that the building is insured for 500 million yuan.
Experts say that the premium is not enough to cover damages especially with disasters such as earthquakes or fires. The insurance regulatory bureau said that Diwang Mansion is one example of companies that are ignoring commercial property insurance.
Recent years showed that extreme forms of weather have been slowly rising, and have inflicted damages to property and even lives. Not all companies realize that increasing premium rates will help control the risks of having to deal with the damages from these types of events.
Out of the 360,000 companies that are registered in Shenzhen only 240,000 of these companies have property insurance. A low rate of insurance premiums and a small amount of companies that are showing interest in buying insurance. Insurance companies find it difficult to compensate businesses that are damaged by disasters.