Insurers to pay out 300 million yuan

Chinese insurance companies expect quake claims to reach 300 million yuan (27.5 million euros), the country's regulator said on Thursday.

Wu Dingfu, chairman of the China Insurance Regulatory Commission (CIRC), said that the number of insurance claims is expected to soar as reconstruction work gets underway in the quake-hit province of Sichuan.

According to China Daily, figures from the commission show that as of Wednesday, insurance companies have paid out 50.4 million yuan (4.6 million euros) in claims. Almost 43 million yuan (3.9 million euros) related to life insurance and the rest to property and medical insurance.

“This is the worst year the insurance sector has ever faced, and payouts will be far higher than any on record, the paper quoted Wu as saying.

Wang Xiaogang, an analyst with Orient Securities, said that the payouts relating to the earthquake will have off less than 1 percent off the values of listed insurance companies.

The long-term impact, he said, will also be offset by the increased demand for policies in the wake of the disaster.

Insurance firms have set up 24-hour claim hotlines and several companies have relaxed their usual requirements and extended their deadlines.

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