Shenzhen proposes trials of disaster insurance

Shenzhen is likely to launch China's first trials of disaster insurance, Economic Daily reported on Monday.

The China Insurance Regulatory Commission's Shenzhen bureau said it has proposed a detailed plan for the disaster insurance trials to the city's government for review.

A survey by the CIRC Shenzhen bureau showed that some 80 percent of residents in Shenzhen responded they have a need for insurance covering losses from earthquakes, typhoons and rainstorms, and 20 percent said they would buy such policies if introduced.

Most Shenzhen residents hope disaster insurance would include both life and property insurance, the Economic Daily report said.

Analysts said insurers should learn from the mature experience of their international counterparts and build a multi-level, multiple-protection compensation mechanism for losses from natural disasters.

It is essential to set up a reasonable pricing system for such policies, analysts said.