The 8.0-magnitude earthquake, which struck Sichuan Province on May 12, evoked awareness of the importance of insurance protection, especially disaster coverage.
After the quake, insurers' hotlines received inquires on insurance products for protection purposes as well as for indemnity.
So far the death toll has reached 34,073 lives and 245,108 people have been injured in the quake as of yesterday noon. The powerful quake jolted southwest China's Sichuan Province on May 12 but Chinese have come and joined together to rescue the thousands of victims and sent donations of various kinds and expressed support, with the insurance industry in the forefront of the efforts.
Insurers sent emergency teams to offer indemnity to policyholder victims, smooth indemnity procedures and donated 164.23 million yuan (US$23.46 million) as of yesterday to support the victims in the quake-hit area.
Insurers have paid indemnity of 14.63 million yuan in claims related to China's deadliest quake in 32 years as of Sunday, the China Insurance Regulatory Commission said yesterday on its Website.
Insurers received about 100,000 claims with 4,434 insured people certified dead and another 2,841 injured.
The massive earthquake will eat into insurers' profits over the short term but increase insurance awareness and help China's disaster insurance industry in the long run, analysts said.
"Shares of listed insurers are under pressure to drop due to the earthquake spill-over effects," said Yu Bin, a SYWG Research & Consulting analyst. "However, it is a one-off effect and will not trim the long-term profitability of insurers."
Another analyst, Tian Hui of Industrial Securities Co, said life insurers ''are the main bearers of indemnity for earthquake losses. However, as the insurance penetration in the quake-hit area is relatively low, the impact will be limited."
Life insurers may face indemnity claim of 400 million yuan, Tian said.
