PICC to Write Rubber Tree Windstorm Insurance for China’s Hainan Rubber Group

PICC Property and Casualty Co. Ltd. [77633] said it has partnered with Great Wall Insurance Brokers Co. Ltd. and China State Farms Agribusiness (Group) Corp.’s Hainan branch to provide rubber tree windstorm insurance for the Chinese agricultural industrialization enterprise, Hainan Rubber Group, in 2009.

Liu Zhenghuan, PICC’s executive vice president, said the cooperation between PICC and China State Farms Agribusiness’s Hainan branch means the insurer has entered into a new area of the agribusiness system, which has “significant meanings for the manufacturing stability of natural rubbers and their supply security.”

Liu said PICC will “actively enlarge its business cooperation” to provide insurance protection for the manufacturing and provision of natural rubbers, as well as to facilitate the economic development of the southern Chinese province of Hainan Island.

In addition, Liu has reaffirmed that PICC will also stay focused on developing rural insurance businesses and strengthening insurance protection to rural residents in China.

According to the China Insurance Regulatory Commission, by the end of May PICC recorded accumulated original premium income of over 53.57 billion yuan (US$7.84 billion), representing growth of 22.5% from 43.74 billion yuan in April.

During the first five months, the CIRC said the Hainan market overall had total original premium income of 1.47 billion yuan. Among the total, property insurance accounted for 551 million yuan, life insurance 832 million yuan, accident insurance 34.87 million yuan, and health insurance accounted for the remaining 53.36 million yuan.

(By Rebecca Ng, Hong Kong news editor: [email protected])