Chinese financial regulator unveils new science and tech insurance framework

Chinese financial regulator unveils new science and tech insurance framework | Insurance Business Asia

Technology

Chinese financial regulator unveils new science and tech insurance framework

Initiative to focus on different phases of innovation

Technology

By
Roxanne Libatique

The National Financial Regulatory Administration (NFRA) of China is advancing efforts to build a specialised insurance framework tailored to science and technology sectors.

NFRA official Yin Jiang’ao shared details of the initiative during a recent press briefing in Beijing, highlighting its goal to enhance insurance offerings for technology-focused businesses at various stages of their growth.

According to Yin, these products will provide protection across different phases of innovation, from initial equipment deployment to safeguarding intellectual property.

In partnership with other government agencies, NFRA plans to broaden policy support for this specialised insurance sector. The objective is to create a system that offers extensive coverage while integrating financial incentives such as subsidies, tax benefits, and performance-based rewards to mitigate risks and stimulate innovation within the tech industry.

Pilot projects to test science and tech insurance

Several regions, including Ningbo in Zhejiang province, Lingang in Shanghai, and Hudong in Hubei province, have already launched pilot projects to test science and technology insurance solutions. These initiatives are being used as reference points for broader adoption.

Yin emphasised that managing risks in the tech sector often requires collaborative efforts across multiple industries due to the complexity of the issues involved.

Luo Yanjun, another official from NFRA, added that the administration will continue to guide insurance companies to allocate more investment into advanced manufacturing and emerging technology sectors.

Global insurtech leaders for 2024

As NFRA pushes for the expansion of science and technology insurance, the global insurtech sector continues to see innovation and growth.

IB conducted a comprehensive evaluation over a 15-week period to create the list. The process involved consulting with industry experts, interviewing brokers, and surveying thousands of participants across IB’s international network. The research focused on identifying the most effective and dependable insurtech solutions currently available.

Technology providers were invited to nominate their products, showcasing key features and competitive advantages. After a thorough analysis based on industry feedback and expert recommendations, 25 companies were selected as 5-Star Insurance Technology Providers for 2024.