INSURERS URGE CHINA TO SET UP CATASTROPHE INSURANCE SCHEME

Three of China’s largest insurers have suggested to the Chinese government that it establish a catastrophe insurance fund, reports First Financial Daily . The suggestion was made jointly by Yang Chao, head of China Life, Wu Yan, president of The People’s Insurance Company, and Liu Jingsheng, chairman of China Reinsurance. The three executives urged the State council to address the issue of catastrophe insurance by establishing a system that can exploit the country’s current risk loss compensation plan, and to accelerate the creation of such a scheme by fast-tracking any legal changes that need to be made. In relation to advising what format such a system should undergo, the China Reinsurance chairman added that a mature catastrophe guarantee system should include a government-sponsored basic emergency mechanism alongside a compensation mechanism provided by the insurance industry and social relief.