China News Service, Beijing, September 1 (Reporter Wang Enbo) China's real estate industry has developed rapidly in recent years, but the penetration and coverage of commercial housing insurance is very low, and there is a huge protection gap.
A report published by the Swiss Re Institute of Swiss Re on the 1st suggested that the development of China's commercial housing insurance should combine foreign experience and the unique characteristics of the Chinese market to solve the national financial pressure caused by the lack of insurance and the possible triggers due to insufficient protection Social issues.
The report pointed out that the lack and insufficiency of commercial housing insurance has caused urban housing to face risk protection gaps under threats such as fires, explosions, and natural disasters.
Many cases in the Chinese market have shown that because many accidents have no liability or the liability of the liable party is insolvent, it is extremely difficult to claim compensation, and the actual loss of residents can only be compensated by the government. This will increase the government's financial pressure. Only relying on limited government subsidies cannot fully compensate residents for their actual losses after the disaster.
According to Chen Donghui, President of Swiss Re China, data from Swiss Re Research Institute shows that China's housing insurance penetration rate is about 0.01%, which is much lower than the average level of foreign markets. For example, Japan has 0.18% and the United States has even reached 0.48%.
Such a huge security gap is extremely disproportionate to China's rapidly developing housing market.
In response to the reason for this gap, Swiss Re Research Institute found in a survey that banks, out of risk control considerations, will force lenders to insure their mortgaged properties when applying for mortgages to protect against property losses. This has become a developed country. The main thrust of the high penetration rate of market housing insurance.
The Swiss Re Research Institute conducted a survey of commercial banks in the Greater Bay Area that the main reason for the bank’s personal housing mortgage default is that the borrower loses the ability to repay due to the break of the personal capital chain, and the housing loan is caused by serious damage to the mortgaged house. The probability of default is low.
In addition, additional requirements for housing insurance may also put banks at a disadvantage in the competition.
Therefore, in the Chinese market, banks are unwilling to actively require borrowers to purchase housing insurance due to credit risk considerations.
"In fact, if a catastrophe occurs and serious losses occur in mortgaged properties, banks cannot diversify the risks faced by their mortgage loans." said Xing Li, deputy director and senior economic analyst of the Swiss Re Institute China Center, Swiss Re. Therefore, At the regulatory level, encouraging banks to strengthen and standardize mortgage insurance against property losses is essential for protecting the balance sheets of commercial banks and reducing the credit risks of commercial banks, thereby further promoting the healthy development of the commercial housing market.
In addition, the report also recommends that relevant parties proceed from the actual market conditions and introduce insurance mechanisms into special residential maintenance funds.
Special residential maintenance funds are intended to be used exclusively for major repairs, mid-repairs, renewal, and reconstruction of shared parts of residential communities and shared facilities and equipment after the warranty period expires.
China's housing special maintenance fund system has achieved certain results since its implementation in 2008. However, in the specific implementation, due to the strict conditions of use and the relatively lagging owner organization, the efficiency of maintenance funds is not high, and the utilization rate is 0.2%. -1.6%, and it is more difficult to use in emergency situations.
By learning from the successful case of "elevator insurance" unique to the Chinese market, the Swiss Re Research Institute report puts forward the idea of co-managing property insurance in China's residential communities, that is, introducing an insurance mechanism into the special maintenance funds for residential buildings, which can reduce decision-making costs and promote funds The increase in utilization rate can also give full play to the risk management functions of insurance companies, improve the overall management level of community properties, and achieve capital preservation and appreciation.
Zhang Chuying, head of property insurance underwriting at Swiss Reinsurance China, said that it is a common practice for apartment building committees to purchase community co-managed property insurance for community shared parts, facilities and equipment overseas.
The introduction of an insurance mechanism into the special housing maintenance funds ensures that owners can obtain more complete insurance protection and property services without additional funds, and may become a new solution to improve the management level of Chinese residential communities and reduce the housing security gap.
(Finish)