Nearly a week after the disaster in Tianjin, insurers and their reinsurers were still to quantify their exposure. The two explosions that devastated an industrial area of the third port of the country would be very expensive for Chinese insurers. According advanced Tuesday by Fitch Ratings estimate their losses could “exceed 1 to 1.5 billion” (900 million to 1.3 billion).
“The high penetration rate of insurance in this region could make these explosions the costliest disaster in recent years to the Chinese industry,” highlights the agency rating.
This event could in particular “undermine” financial performance “of some regional actors” and “insurers of property and liability risks with a high accumulation in the region,” she says. Six companies (PICC, Ping An, China Pacific Insurance, China Continent Property & amp; Casualty Insurance, Taiping General Insurance and Sunshine Property & amp; Casualty Insurance) are particularly active in the area of Tianjin, totaling more than 77% market share there of non-life insurance.
Foreign Insurers
For foreign insurers, German Allianz and its Swiss competitor Zurich Insurance Group reported having already received insurance claims. But the first one does not expect a major financial impact.
As emphasized by Fitch Ratings, this disaster should primarily affect motor insurance (with the destruction of over 8,000 vehicles , according to Chinese media), damage to property, liability and cargo insurance (transported goods).
But we also expect a number of statements claims “significant” of life insurance and health side. The victims are covered by a government plan, in addition to their own insurance, reports the rating agency. “Every injured insured by this plan can claim compensation of between 20,000 and 35,000 yuan ” (between 2,800 and 4,900 euros), while that “a compensation of 50,000 yuan will be paid in case of death, “ she says.
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