EARTHQUAKE INSURANCE EARTHQUAKE INSURANCE MANAGEMENT IN CHINAMANAGEMENT IN CHINA

China Insurance Regulatory ComChina Insurance Regulatory Commissionmission

DEC 9 DEC 9 ，， 20052005

CONTENTCONTENT

• Earthquake disaster Earthquake disaster in chinain china

• Earthquake insurance in china Earthquake insurance in china

• Problems of earthquake insurance Problems of earthquake insurance development in chinadevelopment in china

• Efforts to promote the establishment Efforts to promote the establishment of earthquake insurance system of earthquake insurance system

• Prospect of earthquake insurance in Prospect of earthquake insurance in China China

Earthquake disaster Earthquake disaster in in chinachina

◆◆ China has suffered 35% of earthquakes of magnitudeChina has suffered 35% of earthquakes of magnitude

s (M) of 7 or above on the Richter scale. s (M) of 7 or above on the Richter scale.

◆ ◆ Twenty-three of it’s thirty-one provinces and two thTwenty-three of it’s thirty-one provinces and two th

irds of the megacities are vulnerable to earthquakeirds of the megacities are vulnerable to earthquake

◆◆ Half of China mainland is exposed to earthquakes hazHalf of China mainland is exposed to earthquakes haz

ards.ards.

Earthquake disaster Earthquake disaster in in chinachina

　Earthquake

of 6 (M)

Earthquake of 7 (M)

Deaths (thousands

)

Injured (thousands

)

People affected

china since2

0 centur

y

380 times 72 times 590 760 Millions

CIRCCIRC

CONTENTCONTENT

• Earthquake disaster in chinaEarthquake disaster in china• Earthquake insurance in chinaEarthquake insurance in china • Problems of earthquake insurance Problems of earthquake insurance

development in chinadevelopment in china• Efforts to promote the establishment Efforts to promote the establishment

of earthquake insurance system of earthquake insurance system • Prospect of earthquake insurance in Prospect of earthquake insurance in

China China

Earthquake insurance in Earthquake insurance in chinachina

• 1951—1957, earthquake insurance was insured as a e1951—1957, earthquake insurance was insured as a e

xtended clause of property insurance . xtended clause of property insurance .

• 1958—1979, earthquake insurance was intermitted 1958—1979, earthquake insurance was intermitted

with property insurance because of the cease of the with property insurance because of the cease of the

national insurance industry. national insurance industry.

• 1980 —1980 — ， ， earthquake insurance was resumed and bearthquake insurance was resumed and b

e insured by commercial insurance contracte insured by commercial insurance contract . .

Earthquake insurance in Earthquake insurance in chinachina

• From the late 1990’s,most of the property From the late 1990’s,most of the property

insurance companies stopped insuring insurance companies stopped insuring

earthquake risks or restricted the coverage to earthquake risks or restricted the coverage to

avoid operation risks.avoid operation risks.

88

CONTENTCONTENT

• Earthquake disaster in chinaEarthquake disaster in china• Earthquake insurance in china Earthquake insurance in china • Problems of earthquake Problems of earthquake

insurance development in chinainsurance development in china• Efforts to promote the establishment Efforts to promote the establishment

of earthquake insurance system of earthquake insurance system • Prospect of earthquake insurance in Prospect of earthquake insurance in

China China

Problems of earthquake Problems of earthquake insurance development in insurance development in chinachina

• The first problem ——No The first problem ——No

compulsory regulation of compulsory regulation of

catastrophe insurancecatastrophe insurance

Problems of earthquake Problems of earthquake insurance development in insurance development in chinachina

• The second problem——Lack of fiscal The second problem——Lack of fiscal

support for catastrophe insurancesupport for catastrophe insurance

• The third problem —— lack of The third problem —— lack of

experience and specialists in experience and specialists in

catastrophe management catastrophe management

Problems of earthquake Problems of earthquake insurance development in insurance development in chinachina

Problems of earthquake Problems of earthquake insurance development in insurance development in chinachina

• The last one—the public’s awareness The last one—the public’s awareness

of catastrophe insurance needs to be of catastrophe insurance needs to be

arousedaroused..

CONTENTCONTENT

• Earthquake disaster in chinaEarthquake disaster in china• Earthquake insurance in china Earthquake insurance in china • Problems of earthquake insurance Problems of earthquake insurance

development in chinadevelopment in china• Efforts to promote the Efforts to promote the

establishment of earthquake establishment of earthquake insurance systeminsurance system

• Prospect of earthquake insurance in Prospect of earthquake insurance in China China

Efforts to promote the establisEfforts to promote the establishment of earthquake insurance hment of earthquake insurance systemsystem

•Formulating a preliminary eartFormulating a preliminary earthquake insurance schemehquake insurance scheme

◎ ◎ In 2003,CIRC combined with Seismological BuIn 2003,CIRC combined with Seismological Bureau and Ministry of Finance and State Adminireau and Ministry of Finance and State Administration of Taxation formed a special working stration of Taxation formed a special working group on earthquake insurance and formulatgroup on earthquake insurance and formulated a preliminary scheme to establish earthqued a preliminary scheme to establish earthquake insurance for household properties. ake insurance for household properties.

◎ ◎ Since 2003, CIRC has never stopped its effort tSince 2003, CIRC has never stopped its effort to promote programs of earthquake insurance o promote programs of earthquake insurance system and improve the feasibility of the schesystem and improve the feasibility of the scheme. me.

Efforts to promote the Efforts to promote the establishment of establishment of earthquake insurance earthquake insurance systemsystem

•encouraging insurance companies encouraging insurance companies to develop commercial earthquake ito develop commercial earthquake insurance productsnsurance products

Efforts to promote the Efforts to promote the establishment of establishment of earthquake insurance earthquake insurance systemsystem

•communicate and cooperate witcommunicate and cooperate with the experienced countries or orh the experienced countries or organizationsganizations

CIRCCIRC

CONTENTCONTENT

• Earthquake disaster in chinaEarthquake disaster in china• Earthquake insurance in china Earthquake insurance in china • Problems of earthquake insurance Problems of earthquake insurance

development in chinadevelopment in china• Efforts to promote the establishment Efforts to promote the establishment

of earthquake insurance system of earthquake insurance system • Prospect of earthquake Prospect of earthquake

insurance in Chinainsurance in China

Prospect of earthquake Prospect of earthquake insurance in Chinainsurance in China

• More and more people realize the More and more people realize the importance of earthquake insurance.importance of earthquake insurance.

• But there is a long way for us to go to But there is a long way for us to go to construct the earthquake insurance construct the earthquake insurance system.system.

Thank you for your Thank you for your attentionattention