The National Financial Regulatory Administration has issued a directive regarding financial and insurance services for flood control, disaster relief, and post-disaster reconstruction efforts.

This directive highlights that recent heavy rains and strong winds in regions such as Guangxi, Hubei, and Gansu have led to severe incidents including dam breaches and landslides, resulting in significant casualties and economic damage. Meteorological forecasts indicate that Typhoon "Bavi" will bring torrential rains to parts of the country, creating a complex and severe situation for flood prevention.

The notice outlines several key requirements for banking and insurance institutions to enhance their support in these critical areas.

Enhancing Political Awareness and Responsibility

Institutions are urged to prioritize the safety and well-being of the people, strengthen coordination, and work closely with local authorities. The directive emphasizes the role of insurance as an economic stabilizer and the importance of banking support for reconstruction to minimize property losses and help affected individuals and businesses recover swiftly.

Streamlining Claims Assessment and Payouts

Insurance companies are instructed to monitor the disaster situation closely, allocate resources such as assessment vehicles and claims personnel efficiently, and ensure emergency support. They must conduct on-site assessments safely, simplify claims procedures, establish dedicated service points in heavily affected areas, and expedite payouts, including advance payments where appropriate. Utilizing mechanisms for mutual recognition of disaster assessment results in auto insurance is also encouraged to improve service quality.

Ensuring Continuity of Basic Services

Banks and insurers must implement robust contingency plans, inspect and secure their operational sites and infrastructure, and restore services as quickly as possible. For locations unable to operate, clear communication with customers is essential. Institutions should leverage digital channels like mobile and online banking to maintain uninterrupted basic financial services and set up green channels to meet urgent needs for fund access and insurance claims.

Increasing Credit Support for Reconstruction

Banks are directed to bolster credit support for companies involved in flood control, disaster relief, and essential supplies. They should facilitate efficient loan approvals to aid post-disaster rebuilding and support businesses in production, transportation, and storage of emergency materials. For viable enterprises temporarily impacted by floods, banks are advised to avoid withdrawing loans or applying undue pressure. Enhanced inclusive financial services are also recommended to assist affected farmers, small businesses, and individual entrepreneurs.

Strengthening Coordination and Oversight

Local financial regulatory bureaus are tasked with overseeing and coordinating support efforts within their jurisdictions. This includes enforcing institutional responsibilities, ensuring implementation of measures, and coordinating on-site operations as per government directives. Strict adherence to duty rotation, key post staffing, and information reporting systems is mandated, with significant developments requiring immediate reporting.

Currently, insurance institutions in Guangxi, Hubei, Hunan, Guangdong, Guizhou, Gansu, Chongqing, Jiangxi, and Anhui have received approximately 320,000 claims related to storm and flood disasters, with payouts, including advance payments, exceeding 22 billion yuan.