PICC pays 60% of compensation claims from Typhoon Doksuri

The People’s Insurance Company of China (PICC), one of largest insurance companies operating in China, has paid out 60% of the compensation claims it received pertaining to the damage caused by super Typhoon Doksuri, which caused record rainfall in northern China earlier this month.

Doksuri has gone on to become the costliest typhoon to hit China on record, as well as the strongest typhoon to impact Fujian since Typhoon Meranti in 2016, and the most powerful typhoon to strike the province since records began in 1950.

As of August 28, PICC had made payments of CNY2.32 billion (approximately $318.8 million) related to Typhoon Doksuri.

PICC Vice President, and President of PICC’s unite PICC Property & Casualty Insurance, Yu Ze, said at the Beijing-based firm’s recent earnings call that car payouts were the fastest, with 98% paid.

At the same time, the losses resulting from Typhoon Doksuri amounted to CNY3.86 billion  ($530 million), and net losses after deducting reinsurance come to CNY2.74 billion.

From this figure, motor insurance claims amount to CNY990 million ($135.8 million), with non-motor insurance claims amounting to CNY970 million, and agricultural insurance claims making up CNY780 million.

In addition, PICC also witnessed an 8.7% rise in net profit in the first half of the year with CNY19.8 billion ($2.7 billion), according to the company’s recently published semi-annual report.

Income from insurance premiums also jumped up 9.1% to CNY413.5 billion ($56.7 billion).

Elsewhere, for the property insurance business, its core subsidiary, PICC Property & Casualty recorded a 5% jump in net profit to CNY19.2 billion ($2.6 billion), while profit from underwriting climbed 6% to CNY8.1 billion, and revenue from insurance premiums soared 8.8% to CNY300.9 billion.

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