Business managers taking exposure to floods more seriously
Business managers in the Pearl River Delta are thinking more about their exposure to natural catastrophes such as floods.
Business managers in the Pearl River Delta are thinking more about their exposure to natural catastrophes such as floods.
Lloyd's chairman John Nelson said this was partly a result of government pressure because it was pushing mainland enterprises to use more insurance to relieve the state of the burden of rebuilding economies after disasters strike.
"There has not been a history of insurance in China … it's all event-driven, with the government being the provider of insurance of last resort," Nelson said. "But as businesses grow and [the economy is] commercialised and industrialised … we are seeing insurance penetration rates rising, encouraged by the government because otherwise it's a burden on the economy and the people."
Kegan Chan, a Hong Kong-based consultant with insurance broker Marsh Risk, advises companies in Hong Kong and the mainland, with a lot of focus on the Pearl River Delta.
There has not been a history of insurance in China … it's all event-driven
Chan said delta companies were doing more planning for natural disasters, partly because of the influence of foreign firms that had set up joint ventures in the region and had imported their global business-continuity plans.
