Insurance Regulatory Commission to Pilot Catastrophe Insurance Program
The China Insurance Regulatory Commission said that Shenzhen will be piloting a catastrophe insurance program that will fill the gap in the insurance coverage in China. An insurance working group has met in the city in order to discuss the catastrophe fund establishment, its scope of coverage, premium rates and other topics.
The insurance program was decided after earthquakes in several regions happened and Shenzhen’s high risk of typhoons and tsunamis which was based on a study of the meteorological statistics being done for the past 20 years. The program will be supported by the Shenzhen government and could be used as a model for other parts of the country.
In other news the commission will be imposing a fine of almost 2 million yuan on 18 insurers and agents in the city for several irregularities that happened since January of last year.