Shenzhen gets Green Light to Pilot Catastrophe Insurance Program
Shenzhen has won the approval of the Central Government to pilot a catastrophe insurance program that will fill in the gap in the insurance coverage in China. The city government gave the green light to conduct a preliminary plan of a new disaster program and to buy insurance policies from insurers to protect its residents and visitors to the city.
A catastrophe fund will also be established to help cover any losses that are not covered by insurance policies that are bought by the city government. Insurers in the city can offer disaster insurance policies to individual residents who want to get better protection by purchasing policies with bigger coverage. The Shenzhen office of the CIRC conducted a study of the meteorological statistics of the city for the past 20 years to get an idea since they are well aware of the high risks of the city for typhoons, earthquakes and tsunamis. The work isfully supported by the Shenzhen government and has caught the attention of the CIRC and is planning to use it as a model for the other parts of the country.
A recent survey was conducted late last year that showed half of the residents living in the city are in favor of having a catastrophes insurance that will cover any losses from natural disasters. Previously the premium for individual buyers was 100 yuan and compensation ranged from 500,000 to a million yuan.