In order to further improve the disposal capacity of property insurance disasters and effectively play the function of insurance disaster prevention and loss reduction and economic compensation, the CBRC issued the "Measures for the hierarchical Disposal of Property Insurance Disasters" (hereinafter referred to as the "Measures"), for the occurrence of natural disasters such as floods, typhoons, earthquakes, mudslides or fire, explosion, transportation accidents and other accidents. Disaster accidents that cause or may cause property insurance losses to pay more than 1 billion yuan or personal casualties to pay more than 20 million yuan or the death of more than 30 insured people or have a particularly significant impact on the business of the property insurance company, the Banking and Insurance Regulatory Commission will be classified as a special major property insurance disaster accident, which will start the national level disaster accident disposal.

The Measures classify the levels of property insurance disasters and accidents, and clarify the main bodies and working measures of overall response to disasters and accidents at all levels. According to the Measures, property insurance disasters are divided into three levels of particularly significant, significant and large according to the nature of the event, the extent of loss and the scope of impact, respectively initiating level I, level II and level III response, and the CBRC and its agencies can adjust the response level according to the evolution of the disaster accident.

Industry analysts believe that the "Measures" provide an effective guarantee for further establishing a working mechanism for the property insurance industry to deal with disasters and accidents and improve the property insurance industry's disaster and accident handling capacity.

Source: China Times