China’s life insurers will be the most affected in the insurance sector after last week’s earthquake, but losses for insurers in general will be limited because of relatively low penetration rates, with property insurers also limiting their earthquake coverage.
Chinese life insurance company, China Life, should face the largest claims from the Sichuan quake, which so far has claimed 32,477 deaths and 220,109 injuries,. The company insured 49 percent of the market n the province, while China’s Ping An, on the other hand, insured around seven percent share.
Even though earthquake has caused property damage estimated to be as high as $20 billion, insurance coverage in the stricken areas is low while property and casualty also have restricted coverage for earthquakes.
Earthquakes remind us all of the important role life insurance plays in protecting our families in a natural disaster.
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