China to establish disaster risk insurance system with state financial support

China will establish a disaster risk insurance system with state financial support, said a circular entitled Ten Suggestions on the Reform and Development of the Insurance Industry of the State Council issued on Monday.

The circular said the move will encourage domestic insurers to play a bigger role in providing insurance for potential disasters.

Official figures show domestic insurers paid 1.33 billion yuan of indemnities for damages and losses caused by the seven typhoons in coastal areas in 2005.

Catastrophes, including typhoons, rainstorms, floods, earthquakes and terrorism, have huge impacts on the development of the insurance industry.

Source: Xinhua