Growth of public liability insurance
The market for public liability insurance in China today is still largely untapped due to low awareness amongst consumers. Nonetheless, the industry is beginning to take off, and Marc Burban, Asian Risk Management Services’ founder and general manager, believes that it has much potential. He states that “The need for public liability will increase as the public awareness about their rights grows.
According to Burban, the level of awareness of public liability insurance varies between different provinces within the country. Most urban areas such as Beijing and Shanghai have a higher level of public liability coverage due to citizens being better informed about their rights and seeking compensation when they are harmed. Burban explains that most public liability insurance policies are based on the Civil Code of the People’s Republic of China, particularly on the section covering tort laws.
To promote the regulation of this type of business, the China Banking and Insurance Regulatory Commission issued the Measures for the Supervision of Liability Insurance Business in December 2020 to standardize the quality of insurance services and to prevent companies from expanding their scope of services arbitrarily. Furthermore, the growth rate for liability insurance has fallen in recent years due to the impact of the COVID-19 pandemic on many industries.
However, opportunities for growth in public liability insurance may arise in the future. Swiss Re China, for example, has recommended that liability insurance policies, including occupational, public, environmental pollution and product safety, be a prerequisite for enterprises to open. It is hoped that, as people become more aware of their rights and compensation becomes more available, public liability insurance will become more popular.
Overall, while challenges may lie ahead, opportunities for growth remain in the public liability insurance industry.
Read the full article, please click:UnisonTimes April 2023
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