Earthquake in China reveals patterns archaic Life Insurance

More than $ 20000000000 dollars of destruction was the result of the most damaging earthquake in China since 1950, bringing to light the knowledge that years of insurance industry of the country behind those of the largest economies in the world.

An official of the China Insurance Regulatory Commission, which are not mentioned rejected, said that only 5% of the cost for most of the damage in Sichuan Province was covered by insurance.

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Compared to the U.S. and its managementHurricane Katrina, the most expensive hurricane in history, companies and the federal government, which is about 50% of the 120 billion U.S. dollars damage was insured covered, there is something wrong, of course, China. `` The earthquake emphasizes how much room insurers to penetrate rural areas of China,''said Zhang Ling, oversaw $ 1100000000 for ICBC Credit Suisse Asset Management Co. in Beijing and holds Ping An (Group) Co. Insurance shares. `` It would be veryto do more momentum and public support, and after natural disasters this year.'' Moreover, the nations largest insurer China Life Insurance Co. and Ping An achieved no, in all of China to expand. have found, according to statistics of KPMG International, a nation of 1.3 billion people, only 4% of insurance. Once more concern than America, where 77% have some form of life insurance. The earthquake of magnitude 7.9 has made about half the 20 millionThe people in Sichuan, covering their homes and buildings, so that 30 000 people still under the rubble, and with a mortality rate of about 20 000 `` When a disaster like this in Europe or the United States, has spent the claims situation can be very different,''said Michael Spranger, a Hong Kong-based earthquake analyst at Munich Re, the world's No. 2 reinsurer Swiss King later. `` Natural coverage rates are very low catastrophe in Asia, in the single digits.'' The chief economist at Swiss ReAsia in Hong Kong, Clarence Wong said the Niigata earthquake that struck central Japan last July, at a cost of $ 3000000000, 10% of which has made the insured losses. The earthquake in China, four months after the most powerful country in snowstorms in 50 years, so offensive that 1 million people had to evacuate. This means that the insurer is always much more competitive when it comes to sales in rural areas, with their wages in the years to risk 26%Decline in the benchmark CSI 300 Index threatens the profit growth of China. The company has a total length of China Life profit falls 61% in the first quarter, increases with Ping An to slower production after opening. `` The earthquake is not expected to have a significant impact on Bilanzen''der Chinese insurers, wrote Hong Kong-based analyst at Fitch Ratings Stanley Tsai and Jeffrey Liew in a May 15 report. `` That is, the losses from the tragic event, together with the poorChanges in the A-share market in early 2008 will bring pressure on insurers 'earnings expectations for the' year''. And 'now clear that more and its rural and natural disaster insurance is a more central concern to the Chinese government. The regulatory official in Beijing, believes that China is planning to set up a system of insurance against natural disasters, which would be paid by the government and the private sector involvement. Zurich Swiss Re havebe announced that the insurance penetration in China, a measure of the premiums as a percentage of gross domestic product was about 2.9% last year, coming 49th in world rankings `` Earthquake insurance penetration is generally very low, and for private clients includes virtually nonexistent,''says Peter Zimmermann, vice president of Swiss Re in Asia and property damage insurance group. Earthquake in China reveals patterns archaic Life Insurance