Lin-gang Special Area, which was included in the China (Shanghai)Pilot Free Trade Zone in August 2019, eyes deeper integration between technology and insurance, which is part of the area's efforts to facilitate the development of strategic emerging industries, according to the latest work plan.
The municipal government of Shanghai and the Shanghai Office of China Banking and Insurance Regulatory Commission released on Thursday a work plan to build Lingang into a demonstrative highland where the insurance industry is given full play to advance the development of pioneering industries.
A comprehensive insurance compensation mechanism will be launched in Lin-gang for industries including civil aviation, high-end equipment manufacturing, integrated circuit, and smart new energy vehicles, said the work plan.
On top of that, efforts should be made to launch new insurance products and services models for IC companies. In terms of all the risks incurred in human clinical trials or the launch of new drugs and medical devices, insurance companies should provide more services throughout the entire life cycle, said the plan.
Low-carbon and green development should be another focus for insurers, according to the plan. To address climate change and facilitate the development of the green economy, products such as index insurance policies should be provided to support the development of new energy companies and ecological agriculture.
Favorable fiscal and tax policies, as well as incentives to attract more talents, will be rolled out soon in Lin-gang so that more innovative technology insurance policies can be developed. IC research centers and companies will be the first to enjoy the favorable fiscal policies designated for insurance policies.
Hu Ping, deputy general manager of the international business department at PICC Property and Casualty's Shanghai branch, said they are likely to introduce new products for IC companies in the near future. The insurer is also building a quantitative assessment model to help IC companies better manage risks.
Initiated by Bank of China's Shanghai branch, Shanghai Rural Commercial Bank and SPD Silicon Valley Bank, a fintech alliance was established in Lin-gang on Thursday in order to provide more financial tools and support to the many technology companies in the area.
"Innovation has been highly valued in Lin-gang, as we aspire to build a frontier industrial cluster here to nurture more technological breakthroughs", said Zhang Xiaohong, deputy head of the finance and trade department for Lin-gang administrative committee.
Technology companies are suggested to work closely with financial institutions to optimize the overall ecology of the fintech industry in Lin-gang, which will be another area projected for substantial growth in the near future, she said.
According to the municipal government, the Shanghai-based insurers provided 90 billion yuan ($13 billion) worth of risk protection last year for technology and biomedicine companies by introducing novel policies such as patent insurance and technology loan insurance.
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