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]

Core Viewpoint - PICC launched the "PICC China Earthquake Casualty Catastrophe Model" to enhance public safety governance and support the development of catastrophe insurance in China [1][2] Group 1: Model Development and Features - The model is based on China's actual earthquake characteristics and integrates cutting-edge geological and seismic disaster research [2] - It employs various casualty algorithms to analyze key factors affecting casualty scale and follows international catastrophe model standards [1][2] - The model can be utilized in insurance pricing, loss assessment, and risk aggregation analysis, providing significant support in multiple insurance operations [2] Group 2: Application and Future Plans - The model generates earthquake disaster risk maps overlaid with population density, allowing for visual representation of potential losses [2] - The company plans to continuously integrate the latest geological and demographic data into the model for iterative upgrades [2] - There is a commitment to enhance disaster risk management capabilities and contribute to the construction of China's catastrophe insurance mechanism [2]