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China’s Approach to Promoting Social Governance by Enhancing Catastrophe Insurance

Author(s)

Jiaxing Huang1, Enhong Huang2,*

Affiliation(s)

1School of Foreign Languages, Wuhan City Polytechnic, Wuhan, Hubei, China 2Department of Physical Education, Wuhan Institute of Technology, Wuhan, Hubei, China *Corresponding Author

Abstract

Catastrophe insurance has emerged as a pivotal national strategy for mitigating large-scale risks, particularly natural disasters, and enhancing societal resilience. China, with its vast territory, dense population, and frequent exposure to catastrophes, has progressively integrated catastrophe insurance into its social governance framework to bolster disaster prevention, economic compensation, and post-disaster recovery. This paper explores China’s evolving approach, emphasizing the necessity of establishing a robust catastrophe insurance system amid escalating climate risks and fiscal pressures. Catastrophe Insurance ‘pilot’ projects in China have demonstrated tangible progress in loss compensation, public awareness, and collaborative governance models. However, challenges persist, including technical constraints in risk modeling, market distortions from non-actuarial pricing, institutional gaps in fiscal governance, and stagnant product innovation. To address these issues, this study proposes targeted countermeasures: strengthening legislative frameworks, optimizing collaborative governance, refining risk-sharing mechanisms, leveraging advanced technologies, and cultivating public risk awareness through nationwide education. By aligning catastrophe insurance innovation with governance modernization, China aims to enhance systemic resilience, foster multi-sectoral coordination, and achieve the dual goals of economic stability and societal harmony. This study underscores the critical role of catastrophe insurance in advancing the “Safe China” initiative and offers insights for global policymakers seeking to balance state intervention with market-driven solutions in disasters and risks.

Keywords

Catastrophe Insurance; Social Governance; China’s Approach; Countermeasures

References

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