Swiss Re has become the exclusive reinsurer to a new catastrophe insurance project in Mao County in China’s Sichuan Province, according to reports from China Financial News.
The project, which is the first in China to provide catastrophe insurance at the county-level, provides the government of Mao County with financial protection against earthquakes, mudslides, sudden landslides and other natural disasters.
Mao County is vulnerable to earthquakes and other natural disasters, China Financial News noted, as it is located only 70 kilometres away from the epicentre of the Wenchuan Earthquake.
Swiss Re joined with AVIC UNITA Insurance Company to initiate the project, and is committed to providing technology and resources to ensure its successful implementation.
The parties aim to provide the regional government with rapid payouts in the event of a disaster to improve the capabilities of emergency response, disaster management and reconstruction efforts.
“Mao County has set an example for the country’s counties and cities in establishing a sound catastrophe insurance system and improving the disaster management system,” China Financial Times quoted Chen Donghui, President of Swiss Re China, as saying.
“Swiss Re will work closely with the Maoxian People’s Government and AVIC Angola Insurance Company,” Donghui continued. “The project experience in other international and national provinces and cities will be brought into Maoxian County, and new technical strengths and resources will be injected into the Maoxian County Financial Risk Catastrophe Index Insurance Cooperation Project.”
“It will also spare no effort to promote the successful experience of Maoxian to other parts of China. More places and people will benefit,” he added.