EARTHQUAKE INSURANCE MANAGEMENT IN CHINA

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EARTHQUAKE INSURANCE MANAGEMENT IN CHINA

• China Insurance Regulatory Commission
• DEC 9 ,2005

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CONTENT

• Earthquake disaster in china
• Earthquake insurance in china
• Problems of earthquake insurance development in
  china
• Efforts to promote the establishment of
  earthquake insurance system
• Prospect of earthquake insurance in China

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Earthquake disaster in china

• ? China has suffered 35 of earthquakes of
  magnitudes (M) of 7 or above on the Richter
  scale.
• ? Twenty-three of its thirty-one provinces and
  two thirds of the megacities are vulnerable to
  earthquake
• ? Half of China mainland is exposed to
  earthquakes hazards.

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Earthquake disaster in china
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CONTENT

• Earthquake disaster in china
• Earthquake insurance in china
• Problems of earthquake insurance development in
  china
• Efforts to promote the establishment of
  earthquake insurance system
• Prospect of earthquake insurance in China

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Earthquake insurance in china

• 19511957, earthquake insurance was insured as a
  extended clause of property insurance .
• 19581979, earthquake insurance was intermitted
  with property insurance because of the cease of
  the national insurance industry.
• 1980 , earthquake insurance was resumed and be
  insured by commercial insurance contract .

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Earthquake insurance in china

• From the late 1990s,most of the property
  insurance companies stopped insuring earthquake
  risks or restricted the coverage to avoid
  operation risks.

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CONTENT

• Earthquake disaster in china
• Earthquake insurance in china
• Problems of earthquake insurance development in
  china
• Efforts to promote the establishment of
  earthquake insurance system
• Prospect of earthquake insurance in China

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Problems of earthquake insurance development in
china

• The first problem No compulsory regulation of
  catastrophe insurance

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Problems of earthquake insurance development in
china

• The second problemLack of fiscal support for
  catastrophe insurance

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Problems of earthquake insurance development in
china

• The third problem lack of experience and
  specialists in catastrophe management

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Problems of earthquake insurance development in
china

• The last onethe publics awareness of
  catastrophe insurance needs to be aroused.

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CONTENT

• Earthquake disaster in china
• Earthquake insurance in china
• Problems of earthquake insurance development in
  china
• Efforts to promote the establishment of
  earthquake insurance system
• Prospect of earthquake insurance in China

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Efforts to promote the establishment of
earthquake insurance system

• Formulating a preliminary earthquake insurance
  scheme

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• ? In 2003,CIRC combined with Seismological
  Bureau and Ministry of Finance and State
  Administration of Taxation formed a special
  working group on earthquake insurance and
  formulated a preliminary scheme to establish
  earthquake insurance for household properties.
• ? Since 2003, CIRC has never stopped its effort
  to promote programs of earthquake insurance
  system and improve the feasibility of the scheme.

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Efforts to promote the establishment of
earthquake insurance system

• encouraging insurance companies to develop
  commercial earthquake insurance products

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Efforts to promote the establishment of
earthquake insurance system

• communicate and cooperate with the experienced
  countries or organizations

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CONTENT

• Earthquake disaster in china
• Earthquake insurance in china
• Problems of earthquake insurance development in
  china
• Efforts to promote the establishment of
  earthquake insurance system
• Prospect of earthquake insurance in China

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Prospect of earthquake insurance in China

• More and more people realize the importance of
  earthquake insurance.
• But there is a long way for us to go to construct
  the earthquake insurance system.

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Thank you for your attention