According to the Financial Supervisory Commission, the pre-tax net loss of China’s insurance industry in the first nine months of this year was $15 billion (110.4 billion yuan). Profit in six years from 2016-2022 is not enough to make compensation.
The reason is that the insurance industry encountered the most significant claims in history. As of October 24 this year, the total amount of epidemic prevention insurance plus vaccine insurance reached $19 billion (136.69 billion yuan), which is 24.6 times higher than the premium income.
Insurance companies said that the epidemic prevention policy was changed on November 7. The patient’s family can isolate at home, which is a great relief for property insurance companies.
However, the new policy must wait until November 7 to go on the road. Insurance applications are often time-deferred. Around the middle of the year, it is estimated that the double insurance against epidemics claim has already exceeded the $20.5 billion (150 billion yuan) mark.Under the pressure of cash flow from epidemic prevention and control insurance, the top 6 property insurance companies in epidemic prevention and control have all applied to the Financial Regulatory Commission for approval to increase capital.