Core Viewpoint - The Guangdong Financial Regulatory Bureau has issued guidelines to support the high-quality development of the insurance industry, aiming to enhance its role in the modernization of China and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area [1] Group 1: Development of Insurance Products - The guidelines emphasize the development of insurance products and services that cater to technological innovation, focusing on key industries such as loss of research and development, equipment loss, patent protection, and cybersecurity [1] - Insurance institutions are encouraged to create a comprehensive product and service system that covers the entire lifecycle of technology-based enterprises, including production, research and development, and the transformation of technological achievements [1] - Specific insurance products are to be developed for major technological equipment, new materials, and various medical and pharmaceutical innovations, including clinical trial liability insurance and product liability insurance for innovative drugs and medical devices [1] Group 2: Enhancing Risk Protection - The guidelines propose enhancing the overall risk protection level for technology through the establishment of co-insurance and reinsurance mechanisms, particularly for areas lacking historical data and with significant potential losses [2] - Financial institutions are urged to focus on key areas and improve product and service innovation mechanisms, as well as incentive policies [2] - Insurance companies are encouraged to innovate in pricing, underwriting, claims adjustment, and risk control, while also enhancing market-based assessment and claims mechanisms for technology risks [2] Group 3: Supporting Technology Transfer - The guidelines call for insurance institutions to support the transformation of technological achievements and to strengthen services for the international technology innovation center in the Greater Bay Area [3] - A mechanism for information sharing among departments is to be established to better match the insurance needs of technology enterprises [3] - Insurance institutions in Guangdong are encouraged to set up specialized departments and teams for technology insurance, cultivate professional talent, and optimize assessment and incentive mechanisms [3]

Core Viewpoint - The insurance industry is positioned to play a crucial role in supporting China's modernization through technological innovation, particularly in addressing aging population challenges and enhancing risk management capabilities [1][12]. Group 1: Role of Insurance in Technological Modernization - The "15th Five-Year Plan" emphasizes the transition of the insurance industry from a "passive risk bearer" to an "active risk governance and innovation partner" [1][3]. - Insurance is expected to serve as a "stabilizer" for risks, providing tailored technology insurance products to mitigate uncertainties in innovation activities [2]. - The industry should act as a "provider of patient capital," investing in strategic technology sectors through equity and bond investments [2]. - Insurance can function as a "connector" within the industrial ecosystem, facilitating the flow of knowledge, technology, and capital, especially in the aging sector [2]. Group 2: Upgrades in Insurance Services - The insurance service model will evolve from "post-event compensation" to "pre-event risk control and in-process reduction," utilizing big data and IoT for deeper involvement in R&D and production [3]. - There will be a shift from "standard products" to "deeply customized solutions," addressing unique risks in specific industries like integrated circuits and biomedicine [3]. - The focus will move from "single-point protection" to "systemic collaboration," embedding insurance services within the industrial and innovation chains [3]. Group 3: Challenges and Solutions in Technology Insurance - Current technology insurance products have limitations in coverage breadth and service effectiveness, particularly in pricing and innovation lagging behind technological advancements [4][5]. - A multi-layered risk governance and incentive system is needed to address the challenges of "reluctance to use" insurance products [6]. - Recommendations include establishing risk compensation pools, shifting focus from claims to risk control, and exploring integrated solutions combining insurance with financing [6][8]. Group 4: Policy Support for Insurance Innovation - A robust policy support system is essential for stimulating the insurance industry's contribution to technological modernization, including targeted subsidies and tax incentives for innovative insurance products [7][8]. - Establishing national and regional risk compensation funds can help mitigate excessive claims in technology insurance [8]. - Encouraging insurance funds to support technology innovation through optimized regulatory policies and the establishment of specialized venture capital funds is crucial [8]. Group 5: Impact of AI on Insurance - The "AI+" initiative presents opportunities for the insurance industry to develop new products for emerging risks associated with AI, such as model liability and algorithmic discrimination [9][10]. - AI can transform operational models in insurance, enhancing risk assessment and management through the integration of diverse data sources [11]. - The industry must balance data ethics and algorithm governance while leveraging AI for improved service delivery and risk management [11]. Group 6: Market Performance and Growth - By the end of 2024, the insurance industry is projected to provide approximately 9 trillion yuan in technology insurance coverage, with a significant increase in premium income [13]. - The investment in technology companies by insurance funds has exceeded 600 billion yuan, reflecting a growing commitment to supporting innovation [13]. - The premium income from technology insurance has seen a year-on-year growth of 30%, significantly outpacing the industry average [13].