ABSTRACT
Many geographical areas are subject to catastrophic events such as floods or earthquakes regularly devastating the lives of large number of consumers. The availability of insurance in some form or other helps people get their lives back on track after a catastrophic event and protects their property from dilapidation or destruction. Where the risks are widespread and pervasive, there is a social risk in that many people may find themselves homeless or living in a dangerously unstable home. All societies must find a way to address such risks, and where the insurance industry is not in a place to provide sufficient cover, ultimately the State is the insurer of last resort. States are increasingly seeking to prepare for this task by creating or making possible favourable conditions for the private insurance industry to help absorb some of the risk. This paper considers recent developments in China and discusses some options available.
