China aims to double insurance penetration
China's State Council has revealed a number of measures aimed at boosting insurance development in the country with the goal of doubling the level of insurance penetration and density in the next 15 years.
The State Council is aiming for 5 percent insurance penetration as a percentage of gross domestic product and Rmb3,500 ($569) for insurance density as premium per capita by 2020.
In 2013, China had insurance penetration of 3 percent with 1.6 percent for life and 1.4 percent for nonlife insurance, according to Swiss Re's sigma report.
A statement from the China Insurance Regulatory Commission (CIRC) recognised the important role the insurance industry plays in the protection of individual, corporate and government properties and wealth.
The State Council has outlined the priorities for insurance development focusing on pension, healthcare, natural catastrophes and agriculture protection, along with liability insurance and reinsurance.
The CIRC also said the industry needs to enhance the promotion of reinsurance businesses for agriculture, transportation, aviation, energy, nuclear power, infrastructure, utility projects, natural perils and other specialist risks.
A comprehensive catastrophe insurance system should be established as part of a multiple-layer financing mechanism for relief of disasters such as earthquakes, windstorms and floods, the CIRC said.
The Shenzhen Municipal government recently became the first public body to introduce a disaster liability insurance policy to cover bodily injury in natural disasters. Swiss Re is the technical adviser and a reinsurer on the programme.