Insurers Encouraged to Launch Technology Insurance

Insurers in the Chinese market are encouraged to launch technology insurance business, according to a notice jointly released by the China Insurance Regulatory Commission (CIRC) and the Ministry of Science and Technology (MST) recently.

Insurance institutions should establish a technology insurance product innovation mechanism that could be participated in by not only insurance companies and insurance intermediary institutions but also scientific research institutions and technology companies. In addition, they should attach more importance to developing new insurance varieties in a bid to provide support to innovation, financing, mergers and acquisitions (M&As) and strategic new industrial supply chains of small- and medium-sized companies. Besides, they should seek how to take part in infrastructure construction of hi-tech industrial development zones, cultivation and development of strategic new industries, huge technology projects and etc.

Technology insurance is a fruit of an activity jointly launched by the CIRC and the MST at the end of 2006 and is of certain policy. China Export & Credit Insurance Corp. and Huatai Insurance Co., Ltd. were selected as the first batch to pilot it. PICC Property & Casualty Co., Ltd. (SEHK: 2328) edged onto the list later.