A senior Chinese insurance regulator said insurance still has a
great role to play in China's disaster relief.
"When disasters or accidents occur, people in developed
countries would think of insurance companies first. While in China,
they would first think of government relief," said Wu Xiaoping,
vice-chairman of the China Insurance Regulatory Commission, at a
forum on disaster and public management?in
Beijing?Saturday.
Wu said the insurance sector paid around US$42 billion of
indemnities as a result of the September 11 terror attacks in the
United States, far surpassing federal government allocations of
US$20 billion.
In China, the big floods in 1998 caused 248.4 billion yuan
(about US$29.93 billion) of direct economic losses, while insurance
indemnities reached only 3 billion yuan (about US$357.14 million).
The serious drilling well gush incident in Kaixian County of Chongqing
Municipality caused grave casualties and property losses in
2003, yet insurance indemnities reached only 200,000 yuan (about
US$24,100), said Wu.
Wu said China's insurance business remains young and lacks
experience in coping with disasters. The public also lacks
insurance awareness.
Disaster management is a comprehensive project that needs the
participation of the state finance, insurance companies,
reinsurance companies and the policy holders. Commercial insurance
should be allowed to play an active role in coping with major
natural disasters and emergencies through legislation, Wu said.
Insurance mechanisms that cover earthquake, flood and nuclear
mishaps should be instituted, Wu said.
(Xinhua News Agency July 4, 2004)