According to financial news sources, the Shanghai Regulatory Bureau of China’s National Financial Regulatory Authority has announced that many companies and families suffered property losses due to the consecutive landings of typhoons “Bebinca” and “Prapiroon” in Shanghai. In response, the Shanghai Regulatory Bureau has urged relevant insurance companies within its jurisdiction to accelerate the claims process for “Double Typhoon” damage cases under the guidance of the National Financial Regulatory Authority and the Shanghai Municipal Party Committee and Government. This is aimed at better utilizing the economic “shock absorber” and social “stabilizer” roles of insurance, comprehensively using various means, strengthening technological empowerment, and ensuring the timely completion of surveys and loss assessment for reported cases.
As of October 18th, 2024, statistics show that a total of 60,298 cases were reported to insurance companies within the jurisdiction, with an estimated compensation of 1.376 billion yuan due to the impact of the “Double Typhoon”. The proportion of completed claims has reached 82%, with the proportion of vehicle insurance claims exceeding 90%. Among the reported cases, the largest property insurance claim was made by Swiss Re Corporate Solutions’ tropical cyclone index insurance product, with a payout of 32.175 million yuan. The insured party was a large theme park in Pudong, Shanghai. Swiss Re Corporate Solutions’ tropical cyclone index insurance product is China’s first index-based insurance policy for tropical cyclones. The insurance liability covers the ultimate net loss caused by property damage and business interruption resulting from tropical cyclones. The tropical cyclone index insurance product triggers payouts once the parameter threshold is exceeded, which greatly simplifies the steps of on-site investigation, loss assessment, and financial data collection in the claims process. This compensates customers for property and business losses caused by natural disasters in a more efficient, convenient, and direct way, compared with the shortcomings of traditional insurance products such as limited coverage, complex claims processes, and slow response speeds.
The Shanghai Regulatory Bureau will continue to track and supervise relevant insurance companies within its jurisdiction to accelerate the claims process and effectively play the role of insurance protection. At the same time, it will actively encourage insurance companies to increase innovation in index-based insurance products for natural disaster risks to better meet market needs.
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