China’s largest reinsurance company, China Re, has launched the first centre dedicated to catastrophe, weather and natural disaster research in the country.
It is the first research institution focusing on disasters and through its work China Re hopes that new technologies and services can be developed, which will support the development of a robust catastrophe insurance system in China.
The China Reinsurance Catastrophe Research Center will focus on creating data bases of catastrophe information, catastrophe risk modelling research and development, as well as the creation of insurance products that can transfer risks to private markets.
Additionally, the center will also serve as an information sharing platform and data exchange, offering a clearing house for Chinese catastrophe and disaster information that can be useful to insurance and reinsurance companies.
Vice president of regulator the China Insurance Regulatory Commission (CIRC) Liang Tao said that the Chinese central government recognises the importance of a functioning catastrophe insurance system, and that the CIRC will continue to promote relevant regulation to help foster market development.
Yuan Linjing, Chief Executive Officer (CEO) of China Re, said that reinsurance plays an important role in the development of catastrophe insurance products.
China is developing a system of social protection against catastrophe risks, with the use of insurance and reinsurance capital playing a key role.
Global reinsurers, such as Swiss Re and Munich Re, have been actively assisting the Chinese government with pilot projects to transfer disaster risks into private markets. China is focusing on making these efforts more self-sufficient, while leveraging international markets to spread the risk.
