China is set to implement its first specialized law on the private economy, titled the “Law of the People’s Republic of China on Promoting the Private Economy,” which will come into effect on May 20th. This landmark legislation marks a significant step in providing legal support and protection for the private sector. In tandem with the implementation of this law, the insurance industry is actively responding by developing multi-dimensional innovations to safeguard the development of private enterprises. Under the guidance of the National Financial Supervision and Administration Commission and other relevant departments, the insurance sector has been building a comprehensive risk protection system for private enterprises through product innovation and service upgrades.
Policy Direction for Insurance Innovation
The Financial Regulatory Authority released the “Action Plan for Strengthening Supervision, Preventing Risks, Promoting Reform and Driving High-Quality Development of the Property Insurance Industry” in December 2024, which explicitly listed strengthening insurance protection for the private economy as a key task. The investment and financing promotion policies outlined in Chapter Three of the Private Economy Promotion Law provide a clear roadmap for insurance services. During a press conference held by the Information Office of the State Council on May 8th, Lin Zhong, the deputy director of the Financial Regulatory Commission, emphasized that efforts will be focused on developing specialized insurance products for private enterprises in areas such as disaster avoidance and loss recovery, employment protection, and technological research and development.
Enhanced Risk Protection for Technology Enterprises
Data from the National Development and Reform Commission indicates that among the over 420,000 high-tech enterprises across the country, private enterprises account for more than 92%. In response to the R&D risks faced by technology-based small and medium-sized enterprises, PICC Property & Casualty has launched “Kehuibao” in Jiangsu, which covers risks such as equipment failure and obstacles in the transformation of scientific and technological achievements, providing over 10 billion yuan in total protection. China Life Property & Casualty Insurance has also innovated the “Cybersecurity Insurance +” project, establishing a full-cycle protection mechanism that covers everything from pre-event protection to post-event claims settlement.
Innovative Breakthroughs in New Forms of Employment Guarantee
Insurance institutions have introduced a number of inclusive products targeting new urban residents, who are predominantly employed by private enterprises. China Life Insurance’s “Enterprise Security” has covered 14,000 small, medium, and micro enterprises, and its pilot service for occupational injury protection in new employment forms has exceeded 34.47 million people. Ping An Property & Casualty Insurance has collaborated with Meituan to launch a daily insurance coverage model for riders, with an average daily coverage of 950,000 people. Taikang Online has innovated a “de facto labor relationship” recognition scheme for the decoration industry, covering 150,000 practitioners nationwide.
Continuous Optimization of the New Energy Vehicle Insurance Ecosystem
Guided by the “Guiding Opinions on High-Quality Development of New Energy Vehicle Insurance” jointly issued by four ministries and commissions, the “Easy Auto Insurance Application” platform of the Shanghai Insurance Exchange has been connected to 22 insurance companies. As of April 9th, it has cumulatively underwritten 412,000 new energy vehicles, providing coverage of 397.6 billion yuan. Industry data shows that the comprehensive cost ratio of new energy vehicle insurance of leading insurance companies has generally decreased by 4 to 5 percentage points compared with 2023, and it is projected that the market size will exceed 190 billion yuan by 2025.
Future Outlook for the Insurance Industry’s Support to Private Enterprises
Data from the Financial Regulatory Authority reveals that the total amount of insurance payouts in the first four months of this year was approximately 1 trillion yuan, with the underwriting volume of new energy vehicle insurance exceeding 10 million units. As the new law is implemented and industry innovation deepens, the insurance industry is expected to continue building a more robust risk defense line for the development of private enterprises, further solidifying its role in supporting the private economy.
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