Core Insights - The release of the upgraded China Earthquake Catastrophe Model 3.7 by Zhongzai Catastrophe Risk Management Co., Ltd. enhances the precision of quantifying earthquake disaster losses and provides reliable data support for insurance actuarial work, disaster prevention planning, and emergency management [1] - The recent advancements in catastrophe risk management models reflect a broader trend in the industry, with multiple models being upgraded to improve disaster risk quantification [1][2] - The implementation of the "Action Plan" by the Financial Regulatory Bureau emphasizes the importance of developing catastrophe risk models for typhoons, floods, and earthquakes as part of a comprehensive disaster prevention and mitigation strategy [2] Industry Developments - The insurance industry is increasingly focusing on proactive disaster prevention measures, as demonstrated by the development of intelligent monitoring systems that can predict agricultural risks and provide timely warnings to farmers [3] - Emergency response capabilities have been enhanced, with insurance companies actively participating in disaster management, such as directing traffic during flooding events to prevent further losses [3] - The speed of claims processing has improved significantly, exemplified by rapid compensation for damages caused by natural disasters, showcasing the industry's commitment to efficient service [4] Regulatory Framework - The "Action Plan" has led to significant advancements in establishing a multi-layered catastrophe insurance protection mechanism, including the recent approval for domestic insurance companies to issue catastrophe-linked securities in Hong Kong [5] - The issuance of catastrophe-linked securities allows for better risk distribution and enhances the resilience of the insurance industry against natural disasters [5] Overall Impact - The insurance sector's role in disaster prevention, emergency response, and loss compensation has become increasingly prominent, with a closed-loop system being developed to enhance efficiency and societal resilience [6] - The industry is transitioning from passive compensation to proactive disaster reduction, supported by technological advancements and innovative mechanisms [6] - As catastrophe insurance systems deepen and emergency service mechanisms improve, the insurance industry's function within the national emergency management framework is expected to become more robust, providing stronger protection for public safety [6]