Tianjin explosions last Wednesday may cause heavy losses for Chinese insurers, estimated between one billion and 1.5 billion dollars (900 million and 1.3 billion euros), says the agency Fitch rating Tuesday, August 18th. A similar estimate to that of Credit Suisse analysts yesterday.
“The high penetration rate of insurance in this area could make the disaster explosion more expensive in recent years for Chinese industry, “the agency said.
Insurers in damages and particularly affected residential
Fitch expects the number of requests compensation continues to increase in the coming weeks and believes that may affect the financial performance of some regional players, including damages and home insurance.
“It is too early to determine the exact impact that the accident will have on the financial strength of the Chinese insurance sector as a whole,” said Fitch, adding that some of the claims could be compensated by reinsurers.
PICC Property and Casualty Company, Ping An Property and Casualty Insurance Company of China, China Pacific Property Insurance, China Continent Property and Casualty Insurance, Sunshine Property and Casualty Insurance and Taiping General Insurance The most active insurers in the region, representing over 77% of non-life insurance, the agency said.
Health insurance and life insurance also concerned
The explosions occurred in an industrial area of Tianjin, east China, on a site containing chemicals causing the death of over 100 people, officially. Hardware side, according to Chinese media, over 8,000 vehicles were destroyed by the explosion.
For Fitch, the compensation claims related to health insurance and life insurance are also likely to be important. The victims are covered by a government plan in place for the accident, in addition to their individual coverage.
“Every injured covered by the government plan can claim compensation between 20,000 and 35,000 yuan (between 2,800 and 4,900 euros) while a compensation of 50,000 yuan (7,000 euros) will be paid in case of death, “wrote the agency.
(With AFP and Reuters)
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