Wednesday, September 20, 2017

Quake insurance system pushed in China

An earthquake catastrophe insurance system is being crafted in China to reduce the fiscal burden of the government for losses incurred from earthquakes.

The China Insurance Regulatory Commission (CIRC) and China Earthquake Administration (CEA) entered into a strategic cooperation agreement to promote and launch an earthquake catastrophe insurance system with Chinese attributes.

The system will use a market-driven mechanism to back disaster relief work and ease government’s load on loss compensation.

Under the agreement, the two camps will embark on developing an earthquake insurance legal system, setting up China’s quake risk and insurance laboratory, managing disaster relief, and promoting the quake insurance system tailored for the Chinese.

CIRC Chairman Xiang Junbo said the partnership will enable the insurance industry to better serve the Chinese people and boost its role in uplifting the economy.

CEA Director Zheng Guoguang, for his part, said the system will help improve China’s quake-proof and disaster relief tools.

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