China province launches coronavirus cover

The Chinese province of Hainan has launched an insurance product specifically designed to cover losses incurred by businesses as a result of the coronavirus outbreak in the country.

According to reports citing a notice released by the China Banking and Insurance Regulatory Commission (CBIRC), the scheme has set aside CNY200m ($28.7m) to cover payouts. The Hainan government will subsidise 70% of the premium for the 100 key businesses that have been designated eligible to obtain the insurance.

The six-month insurance was co-launched by a consortium of 12 domestic insurers including PICC, China Pacific Insurance Co and Ping An Insurance Group. It provides cover for production losses, wages paid to employees in quarantine and fees incurred due to the suspension of operations as a result of the epidemic, according to the CBIRC notice.

The notice did not name the businesses or which sector they were engaged in, however.

“There are lingering concerns that the resumption of business operations will lead to more cases of coronavirus infection and cause production to come to a standstill due to the quarantine policies,” the notice read. “The insurance will play its role of ‘social stabiliser’ and help companies to come through difficult times.”