| Chinese insurers face massive payouts | |
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| Feb 16, 2008 01:22 |   |
 | In last few weeks, heavy snow storms had attacked China and caused huge losses, agricultural crops damaged and people left dead. Right now, the heavy snow disaster has been controlled but the losses caused by it are increasing. According to government statistics, direct economic losses have reached 15.6 billion dollars. The insurance payouts is close to 150 million dollars. Total payouts might exceed 1.2 billion, estimated by CIRC. As time goes on, insurance payout will increase, an offical said. The insiders estimate total insurance payouts will approach 10 to 12 billion but the actual payouts would be 5 to 6 billion yuan. Ping'an Insurance and China Paciffic Insurance are the big victims but their loss in 2008 will be below 5 percent. |
| Feb 17, 2008 19:57 | #1 |
| I think insurance company, especially property insurance company shall be pride of paying compensations to the insured. You know, every insurance company gets lots of premium from the policy holders, but the rate of claim is far low than they get. It is reason why a lot of people like to operate a insurance company. If the insurance company can quickly and completely pay the claim fees to the insured, i am sure a lot of Chinese people will buy insurance and trust insurance. Now, there are still a lot of people think insurance is a scheme. The market of insurance is destroied by the agent who only pay attention to their commission and intentionally defraud the clients. |
| Feb 17, 2008 20:23 | #2 |
| Well......I just hope that the insurance companies in China are more equitable and more reliable than were the insurance companies that covered the people of New Orleans, Louisiana(USA) after hurricane Katrina. I have that strange feeling that if our (USA) insurance companies were to operate in China as they did in the U.S.,then they would have their butts hung!! |
| Feb 17, 2008 23:43 | #3 |
| You know, now in China, there are two big insurance companies which are American insurance, one is AIU, property insurance company, the other is AIA, life insurance company, both of them are subsidiaries of AIG(American International Group), their basic operations are set up in Asia and they began operation in China in 1990's. Actually, their advanced management system greatly promoted the development of Chinese insurance industry. But it is a long way to perfect Chinese insurance industry. |
| Feb 18, 2008 08:56 | #4 |
| Insurance companies apply statistical analysis to the risks. The premiums they charge should cover the payouts. Good insurance compamies then 'reinsure' with outher specialist insurance companies so as to further reduce the risks. Don't weep for the insurance companies! |
| Feb 18, 2008 10:15 | #5 |
| Insurance co is not charity institution. Pooling of large numbers, premium rate based on categorized risks and income from restricted investment are enough to fund the losses payout. |
| Feb 20, 2008 03:36 | #6 |
| "Insurance co is not charity institution." No corporation or company is charity institution. They are all profit-oriented. Marrie, I recommend you to read another post : Which comes first: social responsibility or profit? URL: http://community.travelchinaguide.com/forum2.asp?i=39940 |
| Feb 20, 2008 22:15 | #7 |
| social responsibility earns goodwill and tax credits for profit-oriented org. |
| Feb 21, 2008 02:45 | #8 |
| "social responsibility earns goodwill and tax credits for profit-oriented org." Sometimes goodwill can bring you expected profit. But some companies don't understand it. They try what they could to escape tax let alone social responsibility. They are short-sighted. |
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