EARTHQUAKE INSURANCE MANAGEMENT IN CHINA China Insurance Regulatory Commission DEC 9 ， 2005

CONTENT Earthquake disaster in china Earthquake disaster in china Earthquake insurance in china Earthquake insurance in china Problems of earthquake insurance development in china Problems of earthquake insurance development in china Efforts to promote the establishment of earthquake insurance system Efforts to promote the establishment of earthquake insurance system Prospect of earthquake insurance in China Prospect of earthquake insurance in China

Earthquake disaster in china ◆ China has suffered 35% of earthquakes of magnitudes (M) of 7 or above on the Richter scale. ◆ Twenty-three of it’s thirty-one provinces and two thirds of the megacities are vulnerable to earthquake ◆ Half of China mainland is exposed to earthquakes hazards.

Earthquake disaster in china Earthquake of 6 (M) Earthquake of 7 (M) Deaths (thousands) Injured (thousands) People affected china since20 century 380 times72 times590760Millions

CIRC CONTENT Earthquake disaster in china Earthquake disaster in china Earthquake insurance in china Earthquake insurance in china Problems of earthquake insurance development in china Problems of earthquake insurance development in china Efforts to promote the establishment of earthquake insurance system Efforts to promote the establishment of earthquake insurance system Prospect of earthquake insurance in China Prospect of earthquake insurance in China

Earthquake insurance in china 1951 — 1957, earthquake insurance was insured as a extended clause of property insurance — 1957, earthquake insurance was insured as a extended clause of property insurance — 1979, earthquake insurance was intermitted with property insurance because of the cease of the national insurance industry — 1979, earthquake insurance was intermitted with property insurance because of the cease of the national insurance industry — ， earthquake insurance was resumed and be insured by commercial insurance contract — ， earthquake insurance was resumed and be insured by commercial insurance contract.

Earthquake insurance in china From the late 1990 ’ s,most of the property insurance companies stopped insuring earthquake risks or restricted the coverage to avoid operation risks. From the late 1990 ’ s,most of the property insurance companies stopped insuring earthquake risks or restricted the coverage to avoid operation risks.

8 CONTENT Earthquake disaster in china Earthquake disaster in china Earthquake insurance in china Earthquake insurance in china Problems of earthquake insurance development in china Problems of earthquake insurance development in china Efforts to promote the establishment of earthquake insurance system Efforts to promote the establishment of earthquake insurance system Prospect of earthquake insurance in China Prospect of earthquake insurance in China

Problems of earthquake insurance development in china The first problem —— No compulsory regulation of catastrophe insurance The first problem —— No compulsory regulation of catastrophe insurance

Problems of earthquake insurance development in china The second problem —— Lack of fiscal support for catastrophe insurance The second problem —— Lack of fiscal support for catastrophe insurance

The third problem —— lack of experience and specialists in catastrophe management The third problem —— lack of experience and specialists in catastrophe management Problems of earthquake insurance development in china

The last one — the public ’ s awareness of catastrophe insurance needs to be aroused.

CONTENT Earthquake disaster in china Earthquake disaster in china Earthquake insurance in china Earthquake insurance in china Problems of earthquake insurance development in china Problems of earthquake insurance development in china Efforts to promote the establishment of earthquake insurance system Efforts to promote the establishment of earthquake insurance system Prospect of earthquake insurance in China Prospect of earthquake insurance in China

Efforts to promote the establishment of earthquake insurance system Efforts to promote the establishment of earthquake insurance system Formulating a preliminary earthquake insurance scheme Formulating a preliminary earthquake insurance scheme

◎ In 2003,CIRC combined with Seismological Bureau and Ministry of Finance and State Administration of Taxation formed a special working group on earthquake insurance and formulated a preliminary scheme to establish earthquake insurance for household properties. ◎ Since 2003, CIRC has never stopped its effort to promote programs of earthquake insurance system and improve the feasibility of the scheme.

Efforts to promote the establishment of earthquake insurance system encouraging insurance companies to develop commercial earthquake insurance products encouraging insurance companies to develop commercial earthquake insurance products

Efforts to promote the establishment of earthquake insurance system communicate and cooperate with the experienced countries or organizations communicate and cooperate with the experienced countries or organizations

CIRC CONTENT Earthquake disaster in china Earthquake disaster in china Earthquake insurance in china Earthquake insurance in china Problems of earthquake insurance development in china Problems of earthquake insurance development in china Efforts to promote the establishment of earthquake insurance system Efforts to promote the establishment of earthquake insurance system Prospect of earthquake insurance in China Prospect of earthquake insurance in China

Prospect of earthquake insurance in China More and more people realize the importance of earthquake insurance. More and more people realize the importance of earthquake insurance. But there is a long way for us to go to construct the earthquake insurance system. But there is a long way for us to go to construct the earthquake insurance system.

Thank you for your attention