People's Daily:

In recent years, extreme weather and natural disasters have occurred frequently. Could you elaborate on the positive role that the insurance industry has played in responding to disasters and accidents? How can we further leverage functions of the insurance industry to assist in disaster prevention, mitigation, relief, and post-disaster recovery and reconstruction ? Thank you.

Xiao Yuanqi:

I'd like to invite Mr. Yin Jiang'ao to answer these questions. He often arrives at the frontlines of disasters promptly to expedite insurance services alongside insurance and financial institutions. Please welcome Mr. Yin Jiang'ao.

Yin Jiang'ao:

Thank you for your interest in this issue. In recent years, the frequent occurrence of natural disasters has caused significant losses to the people. For example, in the first half of this year, direct economic losses caused by natural disasters in China amounted to approximately 93.2 billion yuan, significantly higher than the 38.2 billion yuan recorded during the same period last year. The NFRA has earnestly implemented the important directives made by General Secretary Xi Jinping, as well as the decisions and deployments of the CPC Central Committee and the State Council, to promote the role of the insurance industry as an economic buffer and social cornerstone. We have actively responded to disasters and accidents as well as have serviced protection for people's livelihood specifically in the following aspects:

We have strengthened industry coordination and deployment. Facing disasters and accidents, under the unified deployment of relevant local party committees, governments and departments, we have prompted the banking and insurance industry, as well as financial regulatory bureaus in affected regions, to promptly activate emergency response plans, establish green channels, improve service standards and play an active role in disaster prevention, mitigation and relief.

We have guided the industry to provide effective claims services. As Mr. Xiao Yuanqi mentioned earlier, in the first seven months of this year, our insurance industry's claims payments totaled approximately 1.39 trillion yuan, representing a year-on-year growth rate of 30.2%, which is significantly higher than the 5.2% growth rate of premium income during the same period, indicating a rapid growth in claims payments. In response to disasters, we have encouraged the industry to introduce policies such as "three exemptions and four expediting measures" for auto insurance claims and "four expediting measures and two exemptions" for farmhouse insurance claims, ensuring timely and comprehensive compensation. As of now, approximately 2.8 billion yuan in insurance claims have been paid out in southern regions severely affected by disasters, such as Hunan, Jiangxi and Guangdong provinces. Insurance institutions have deployed approximately 87,000 personnel and dispatched nearly 58,000 survey and rescue vehicles, effectively help bring production and life back to normal in affected regions.

We have promoted industry collaboration in disaster prevention and loss mitigation. We have guided the insurance industry to play a risk reduction role in pre-disaster warning, in-disaster management and post-disaster rescue. For example, the insurance industry, in conjunction with relevant departments, recently conducted risk assessments for 143,000 enterprises, identifying approximately 540,000 risks and potential dangers. By facilitating rectification measures, we have achieved disaster prevention and loss mitigation.

In summary, the role of our country's insurance industry in responding to disasters and accidents is increasingly prominent. However, compared to the global average, there is still much to be improved. For example, in the first half of this year, global economic losses from natural disasters totaled approximately $120 billion, of which insurance payments accounted for roughly $60 billion, or about 50%. In contrast, insurance payments in China accounted for approximately 10% of disaster-related economic losses, indicating substantial room for growth.

Looking forward, we will follow the guiding principles of the third plenary session of the 20th Central Committee of the CPC and the Central Financial Work Conference to better leverage the functions of the insurance industry. In terms of institutional improvements, we will establish evaluation systems for insurance protection capabilities and refine mechanisms for graded responses to disasters and accidents. For pilot programs, based on the expansion of residential catastrophe insurance coverage's scope earlier this year, we will summarize the practices in Hebei, Hubei, Beijing's Mentougou district and other regions, and promote pilot programs across the country. In deepening reforms, we will expand the supply of agricultural insurance and improve co-insurance mechanisms to enhance risk prevention for major projects. In strengthening supervision, we will optimize standards for underwriting and claim settlements, enhance the quality and efficiency of insurance services and safeguard the legitimate rights and interests of consumers.

That's all I have to say. Thank you!