Even though China is the fastest growing insurance market in the world, the country's catastrophe insurance protection gap remains significant, according to the recent report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns by Marsh & McLennan Companies' Asia-Pacific Risk Center.
In 2017, China suffered a total economic loss of USD 44 billion (CNY 302 billion) from natural catastrophes, incurring 979 fatalities. While these numbers are less than those in 2016, they illustrate the persistent threat from natural catastrophes to China. Only 9.8 percent of direct economic losses from storms affecting mainland China in 2017 was insured.
According to Guy Carpenter's 2018 Asia Pacific Catastrophe Report, eight of the 20 tropical storms and typhoons that affected the North Pacific as of August 2018 made landfall in China. The report says China is susceptible to a range of natural perils, such as earthquakes, floods, severe thunderstorms and typhoons, and tremendous potential exists for insurers to help in the aftermath of such significant natural disasters.
The report 14 Shades of Risk: Navigating the Risk Landscape in Asia-Pacific, produced by Guy Carpenter's parent company, is an extension of the report From Threats to Impact: Evolving Risk Concerns in Asia Pacific.
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