But China's insurance companies seem to have been immune.

The ongoing outbreak of severe acute respiratory syndrome (SARS) has been more like a blessing for, rather than a threat to, China's insurers.

Latest statistics indicate premium incomes for insurance companies have increased since the disease's outbreak.

Insurers' premiums have rocketed as high as 82.5 per cent in recent weeks. In April, premiums in Beijing rose 38.4 per cent; in Guangdong Province, 17.1 per cent; and in Shanxi Province, 82.5 per cent.

The three regions have been the hardest hit in China by SARS.

Meanwhile, insurers have paid out a meagre 2.11 million yuan (US$254,000) in claims, indicate figures of the China Insurance Regulatory Commission (CIRC) - the industry's watchdog.

Slightly more than 400 people have filed SARS-related insurance claims, even though more than 5,000 SARS cases have been confirmed nationwide.

"Few SARS victims are health insurance policyholders because many Chinese still do not know much about the benefits of insurance," said an official with China Ping An Insurance Co.

"Now, they have learned a hard lesson."

People have been rushing to insurance companies since the disease's outbreak. Meanwhile, insurance companies have developed more than 50 SARS-related policies.

"This is a crucial time for China's insurers," said an industry insider.

"It is hard to imagine so many new insurance policies being churned out in such a short period of time."

China's major insurers have used the SARS outbreak as an opportunity to promote their products and services.

"Launching SARS-related plans has tested the waters," said Liu Yanhui, an official with Xinhua Life Insurance Co.

"By doing this, we can enhance people's awareness about the importance of insurance, and promote our image."

While people are taking greater care in their personal hygiene, they are also driving the "brutal surge" in life and health insurance policies in Singapore, Taiwan and other SARS-affected regions, experts suggest.

Most insurers have done very little advertising.

CIRC Chairman Wu Dingfu, while visiting two insurance companies last week, urged the insurance industry to do more in the fight against SARS.

Most of China's insurance companies have established 24-hour hotline services to explain SARS-related insurance policies, accept claims and answer questions.

One drawback for insurance agents, however, is most people are trying to avoid face-to-face meetings.

This has affected some insurance companies. Some agents in recent weeks have been prohibited by community wardens from knocking on their clients' doors.

Also, the requirement that a customer complete a physical exam before purchasing a policy is also affecting the insurance industry.

Many potential clients are refusing to go to hospitals - where the exams are conducted - out of fear of being infected by the disease.

Some insurance companies have advised their clients to review their health insurance plans to ensure they don't have exclusion clauses that could affect SARS-related coverage.

"In most cases, they only need to extend their original plans to include SARS," said an official with China Pacific Insurance Co.

"People cannot just rely on insurers' good will to pay their SARS-related medical claims."

China's service sectors - including travel agencies, hotels and retailers - are unlikely to receive compensation from insurance firms.

Revenues in the service sectors have dwindled since the SARS outbreak.

"We do not have insurance policies to cover businesses' losses against the epidemic," said Kang Ying, an official with China Pacific Insurance Co.

"Hopefully, we will have a few policies in future."