Speaking at COP27, Richard Sheng, secretary of the board of directors of Ping An Insurance, highlighted the important role the holding company plays in supporting China in the fight against climate change [4].
Product innovation allows Ping An to use insurance as an economic shock absorber and social stabilizer.
In fact, the company has explored covers that combined parametric and index insurance [5] to confront climate risks. This coverage uses rainfall data and typhoons as a parameter for claims payment. The compensation can be determined without on-site inspection, speeding up post-disaster reconstruction and the resumption of business activities.
In 2022, Ping An piloted forest carbon sinks remote sensing index insurance in six provinces: Hebei, Guangxi, Hunan, Anhui, Guangdong and Guizhou.