China plans to launch pilot insurance policies that will cover natural disasters and establish an insurance system for catastrophes, according to a work plan jointly released by China Insurance Regulation Commission and Ministry of Finance on Tuesday.
By the end of 2017, rules on earthquake insurance and an insurance fund for disasters will be established, according to the work plan which mapped out a step-by-step procedure for building an insurance system focused on natural disasters.
Between 2017 and 2020, catastrophe insurance will be popularized across the country, with wide-ranging coverage, as part of the country’s efforts to prevent and mitigate disasters.
Analysts said catastrophe insurance will supplement the current insurance system in China and take advantage of financial vehicles to strengthen risk management capacities of the entire society.
As many as 45 asset insurers will be engaged in the pilot program..
More detailed rules and explanations will be made public in the near future, according to the plan.