(Yicai Global) Jan. 10 -- The science and technology insurance company subordinate to China Pacific Insurance (Group) started operations yesterday, which marks China's first enterprise offering professional science and technology insurance services.
With the registered capital of CNY500 million (USD76.6 million), China Pacific Science & Technology Insurance Co., registered in Jiaxing, the eastern Zhejiang province, will center on the provincial market and cover the Yangtze River Delta Region including Shanghai, reported online financial news outlet Cnstock.com. It aims to be a leading innovative science and technology insurance company in the field by 2020.
The parent company, China Pacific Insurance Group [SHA:601601], kicked off preparations for establishing the subsidiary as early as June 2016, with eight local enterprises engaged in the establishment, including Zhejiang Expressway Co., [HK:0576]. However, it was not until yesterday that the new company obtained the formal business approval from China Insurance Regulatory Commission.
The science and technology insurance policies handle cases of property and profit loss, as well as loss of research funds for technological enterprises and research & development institutions during their R & D, production, sales, and other business activities, which make up the key process for ensuring science and technology innovation and development.
Early in 2006, the ministry of science and technology as well as the CIRC proposed a pilot program for science and technology insurance, which was mainly implemented by other professional insurance companies dealing with property, credit, and life insurances. Due to the distinctive features and wide range of risks surrounding science and technology companies, professional science and technology insurance companies have been absent in China for a long time.