(Yicai Global) Aug. 4 -- China’s insurance companies have already received claims amounting to CNY11.2 billion (USD1.7 billion), according to preliminary estimates, from those affected by the record rainfall and floods that afflicted central Henan province last month causing widespread damage.

Some 545,800 claims related to the Henan rainstorms have been received, the China Banking and Insurance Regulatory Commission's Henan branch told Yicai Global today. Some 109,300 claims worth CNY1.6 billion (USD247.6 million) have already been settled.

Heavy rains have killed 302 people since July 16 and 50 are still missing, the provincial government said earlier this week. The disaster has destroyed 0.58 million hectares of crops, razed more than 30,000 houses and caused direct economic losses of CNY114.3 billion (USD17.7 billion).

The provincial government is doing what it can to soften the blow to the 14.5 million people affected. It has prepared CNY136.2 billion (USD21.1 billion) in credit funds for flood control, disaster relief and post-flood reconstruction, CNY57.1 billion (USD8.8 billion) of which has already been issued.

CBIRC's Henan branch yesterday called for the central province's insurers to support post-flood reconstruction by streamlining procedures to settle claims faster. It also asked banks to make more use of fintech to speed up approvals to make sure the credit funds are released as quickly as possible.

Lenders have also been instructed to lower the cost of financing to flood-hit areas, businesses and people by moderately reducing interest rates, deferring repayment and other means.

Editors: Liao Shumin, Kim Taylor