To impose compulsory insurance on highly polluting industries

In 2016, Premier Li Keqiang pointed out in the government work report that it should vigorously develop green finance. Green finance then became a hot word, stimulating the entire green financial industry to get rid of the bottleneck of previous years, and the industry's heat quickly rose. At the recent annual meeting of the Guiyang International Forum on Ecological Civilization Guiyang International Forum “Green Finance and Global Economic Greening”, Liang Tao, vice chairman of China Insurance Regulatory Commission, provided a micro-level understanding of the insurance industry in promoting the development of green industries.
Liang Tao first mentioned that the insurance industry will have a lot to do in promoting green development. This is primarily because the insurance industry itself has green characteristics. The insurance industry belongs to the capital, technology, and intelligence-intensive industries. The production itself depends on the pricing of products and the collection of capital, so it will not cause any pollution to the environment. From this perspective, the development of the insurance industry is in line with the concept of green development.
As the State Council issued the “Some Opinions on Accelerating the Development of Modern Insurance Service Industry” in 2014, the development of the Chinese insurance industry will rise from the industry’s will to the national will, and the entire industry will enter the fast lane of development. The insurance industry completed a 5.8 trillion insured amount from January to June this year, an increase of 37.3% year-on-year. Liang Tao said that the continuous development of the insurance industry provides a foundation for serving the green industry.
While the insurance industry boosts green development with remarkable results, it should not evade the problem. It is understood that high-risk liability insurance in China has gradually "say good or bad". In response to various problems that have emerged, Liang Tao emphasized in the forum that imposing compulsory liability insurance on highly polluting industries is an important role for the insurance industry in developing green industries. In 2013, the Ministry of Environmental Protection, in cooperation with the China Insurance Regulatory Commission, initiated trials of mandatory environmental pollution liability insurance for enterprises involving the production and discharge of heavy metal pollutants, such as heavy metal mining (including associated minerals) mining and selection, heavy non-ferrous metal smelting, and petrochemicals. While realizing "hard constraints" on insurance for highly polluting industries, the insurance industry also provides environmental pollution protection for related companies. Liang Tao said that in 2015, the insurance industry provided related companies with 14,000 protection measures for environmental pollution, involving an amount of 24.5 billion yuan.

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