The Chinese government via its regulator has urged its insurance and reinsurance industry to focus on developing new products for disaster risk transfer and to help in covering more of the natural catastrophe risk in the country, given the current evident protection gap that exists.
Recent flooding in Henan province in China has provided yet another example of thee massive gap between economic losses from natural disasters, catastrophes and severe weather events and the amount actually covered by insurance.
With the Henan flooding now set to become the biggest insured catastrophe loss in China’s history, it drives home the importance that the country continues to evolve its insurance and reinsurance market, especially in terms of disaster coverage.
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