nach oben

Erschienen in:

2024 | OriginalPaper | Buchkapitel

Managing Environmental Risk Through Insurance: China

verfasst von : Qihao He, Jing Liu

Erschienen in: Managing Environmental Risks through Insurance

Verlag: Springer Nature Switzerland

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

In the context of China, this chapter explores the role of insurance in compensating for environmental damages and regulating environmental risk. On the one hand, insurance is one of the most promising mechanisms to compensate for damage caused by pollution due to its mechanism to cover environmental pollution accidents. On the other hand, insurance could work as a regulatory tool to mitigate environmental pollution through ex ante governance. However, due to the inherent challenges of environmental risk and China’s legal system, insurance faces difficulties in developing environmental insurance products and functioning as theoretically expected. We propose some potential proposals such as mandatory environmental insurance and private-public partnerships which enhance private insurance to address environmental risk.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Environmental Liabilities and Insurance Law in the United Kingdom

Nächstes Kapitel Environmental Liabilities and Insurance Law in the United States

Guo and Marinova (2011), pp. 1673–1679.

Carpenter-Gold (2015), pp. 241–274.

See, generally, Xue et al. (2007), pp. 669–676; Wu (2020), pp. 63–102; Zhao (2019).

Party Documents Research Office of the CPC Central Committee, XI Jingping’s Discourse on the Construction Socialism Ecological Civilization (2017). Cited from Wu (2020), pp. 63–102.

Id.

Beck (1992); Baker (2010), pp. 433–447.

Ben-Shahar and Logue (2012), pp. 197–248.

Regulations of the People’s Republic of China on the Prevention and Control of Vessel-Induced Marine Environment Pollution (promulgated by the Executive Meeting of the State Council on Sept. 2, 2009, effective Mar. 1, 2010), Art. 53.

Dou (Feb. 24, 2022).

Swiss Re (2019).

Sun (2021), pp. 44, 52–53.

Green Peace (2020); Swiss Re (2019), p. 8.

NAIC (2021).

Kiern (2011), pp. 1–64.

De La Rue and Anderson (2009), pp. 61–63.

Anderson (1998), pp. 1–23; Kunreuther and Michel-Kerjan (2007), p. 1813.

Swiss Re (2005), p. 14.

Reinsurance can be understood as simply an insurer’s insurance. Insurers have protected themselves through private reinsurance contracts whereby portions of their losses from a catastrophic disaster are covered by some type of reinsurance arrangement. Insurance-linked securitization could be regarded as the process of transferring insurance risks from insurers and conveying them to third parties through tradable securities. See Jaffee and Russell (1997), pp. 205–230.

The government has a deep credit capacity due to its ability to raise money through tax or borrow money by issuing debt far more readily than private insurers or reinsurers. See Kaplow (1991), pp. 167–175.

See below Sect. 5. Insurance as Governance for Environmental Risk.

Thoyts (2010), pp. 286–295.

Cooter and Ulen (2008), p. 50.

Vaughan and Vaughan (2007), pp. 34–44.

The law of large numbers is the basic principle of insurance, which says that for a series of independent and identically distributed random variables, the variance of the average amount of a claim payment decreases as the number of claims increases. See Priest (1996), pp. 219–237.

See Faure and Partain (2019).

Faure and Heine (2011), pp. 117–150.

“Pareto Efficiency,” also called “Pareto Optimality,” is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off, see Seog (2010), pp. 35–39.

Faure and Jing (2014), p. 269.

See, for example, China Continent Prop. & Casualty Ins. Co., Environmental Pollution Liability Insurance Terms.

See, for example, China Pacific Property Insurance Co., Ltd., Environmental Liability Insurance, Clean up Costs Clause.

See Horkovich et al. (2013), p. 506.

See Huatai Insurance Company of China (2008), pp. 4–14. More information about Huatai can be found at its website: http://www.ehuatai.com/index.aspx.

See Liu (June 8, 2011).

See Changan Liability Ins. Corp., Environmental Pollution Liability Insurance Terms for Workplace Cleanup Costs, more information about Chang An please refer to its website https://www.capli.com.cn/; Ping An Pollution Liability Insurance, Cleanup Costs of On-Premises Sites, more information about Ping An please refer to its website http://www.pingan.com/investor/en/index.jsp.

Green Peace (2020).

See Faure and Hartlief (2003), pp. 211–220.

Wagner (2007), p. 110.

See [Guidance on the Development of Environmental Pollution Liability Insurance] (promulgated by the Ministry of Envt’l. Prot. & the China Ins. Reg. Comm’n, Dec. 4, 2007).

The Ministry of Ecology and Environment held a ministerial meeting to review and approve in principle the Administrative Measures for Compulsory Environmental Pollution Liability Insurance (2018) http://www.gov.cn/xinwen/2018-05/08/content_5289087.htm.

See the Draft of Administrative Measures for Environment Pollution Insurance of Hazardous Waste. https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202111/t20211119_961008.html.

See [Shenyang Hazardous Waste Pollution Prevention Regulations] (promulgated by the Shenyang City People’s Cong., Oct. 30, 2008, effective Jan. 1, 2009).

Priest (1996), pp. 219–237.

See, for example, Huatai Insurance Company of China (2008), pp. 4–14.

For example, Priest (1996), pp. 219–237.

Faure and Bruggeman (2008), pp. 11–14.

The Insurance Law (2015) Art. 65(4).

Wagner (2009), p. 377.

See Katzman (1988), p. 87 (explaining the claim-made policy).

China Pacific Property Insurance Co., Ltd. [Environmental Liability Insurance], Art. 3.

Abraham (1982), p. 131.

Baker and Swedloff (2013), pp. 1412–1450.

Cogan Jr. (2016), p. 1522.

Ben-Shahar and Logue (2012), pp. 197–248.

Abraham (2010), p. 7.

Shavell (1982), pp. 120–132; Telesetsky (2010), pp. 691–734.

Baker and Siegelman (2013), p. 169.

Molk (2015), pp. 265–277.

These regulatory tools are widely discussed in a series of articles written by regulation by insurance scholars. For example, Baker and Swedloff (2013), pp. 1416–1423; Ben-Shahar and Logue (2012), pp. 197–248.

See, generally, Freeman and Kunreuther (1997).

Yin et al. (2011), pp. 325–363.

Heimer (2002), pp. 117–145.

Ben-Shahar and Logue (2012), pp. 197–248.

Molk (2015), pp. 265–277.

Ben-Shahar and Logue (2012), pp. 197–248.

Yin et al. (2011), pp. 325–363.

Ben-Shahar and Logue (2012), pp. 197–248.

Ma (2018), pp. 106–125.

“Deductibles require insureds to pay a fixed amount ‘out of pocket’ to cover insured losses before the insurance coverage kicks in to cover insured losses thereafter. Copayments typically require insureds to bear some fraction of each covered loss claim filed by an insured.” See Ben-Shahar and Logue (2012), pp. 197–248.

Baker and Swedloff (2013), pp. 1412–1450.

Ma (2018), pp. 106–125.

Abraham (1988), p. 953.

Baker and Swedloff (2013), pp. 1412–1450.

Cohen (1997), pp. 305–352.

Wang (2020), pp. 72–95.

See Faure et al. (2003), pp. 18–50 (discussing the economic analysis of environmental liability).

See, generally, Jost (1996), pp. 259–276.

See Akerlof (1970), pp. 490–491.

See, generally, Faure (2007), pp. 83–100.

See, generally, Kunreuther et al. (1993), pp. 71–87.

Green Peace (2020), pp. 9–11.

Faure and Jing (2012), pp. 261–314.

Nagle (2011), pp. 615–620. In addition, historically many enterprises involved in heavy industry were—and to a large extent still are—state-owned enterprises. It leads to an acceptance that the government may be responsible for historic pollution, and therefore, it may be the primary party who should take action to clean up especially historically polluted sites. See Interview with a Representative, Ministry of Environmental Protection (MEP), in Beijing, China (Aug. 23, 2011).

Swiss Re (2019), p. 1.

Previously, the government charged pollution fees according to Regulations on the Administration of Pollution Fees. Later, the pollution fee was replaced by an environmental tax. In 2016, Environmental Protection Tax Act was adopted and came into effect as of Jan. 1, 2018.

Interview with Wang Jin, Professor, Peking University Law School, in Beijing, China (Aug. 24, 2011) (on file with authors).

For example, in Wuxi (a city in Jiangsu Province), some enterprises have been obliged to buy environmental insurance since 2011, depending on their location and type. See Opinions on Implementation of Environmental Liability Insurance in Wuxi (promulgated by the Gov’t Office of Wuxi, Feb. 22, 2011).

Wuxi engages in this practice. See Environmental Liability Insurance in Wuxi, Id.

Sichuan is an example. According to a Sichuan Environmental Protection Bureau document, the government, when deciding to offer subsidies on pollution control, should give priority to companies who bought environmental liability insurance. The attendance of environmental liability insurance is also a criterion for examining green credit performance. See [Opinion on the Implementation of the Environmental Pollution Liability Insurance Policy] (promulgated by the Sichuan Envt’l. Prot. Agency, Nov. 30, 2010).

Moss (2004), p. 51.

Kunreuther (1968).

Van Boom (2008), p. 265.

A compulsory system was adopted in Changsha. See Rules on the Management of Environmental Risk Enterprises (promulgated by the Changsha Envt’l. Prot. Agency, Aug. 10, 2009).

Marine Environmental Protection Law of the People’s Republic of China (promulgated by the Standing Comm. Nat’l People’s Cong. on Aug. 23, 1982, revised in 2017).

Faure and Jing (2012), pp. 269–273.

Kaplow (1991), pp. 167–175.

Abraham KS (1982) Cost internalization, insurance, and toxic tort compensation funds. Va J Nat Resour Law 2:123–148

Abraham KS (1988) Environmental liability and the limits of insurance. Columbia Law Rev 88:942–988CrossRef

Abraham KS (2010) Insurance law and regulation, 5th edn. Foundation Press

Akerlof G (1970) The market for “lemons”: quality, uncertainty and the market mechanism. Q J Econ 84:488–500CrossRef

Anderson D (1998) Development of environmental liability risk management and insurance in the United States: lessons and opportunities. Risks Manag Insur Rev 2:1–23CrossRef

Baker T (2010) Insurance in sociolegal research. Annu Rev Law Soc Sci 6:433–447CrossRef

Baker T, Siegelman P (2013) The law and economics of liability insurance: a theoretical and empirical review. In: Arlen J (ed) Research handbook in the economics of tort. Edward Elgar Publishing, pp 169–196

Baker T, Swedloff R (2013) Regulation by liability insurance: from auto to lawyers professional liability. UCLA Law Rev 60:1412–1450

Beck U (1992) Risk society: towards a new modernity. Sage Publications

Ben-Shahar O, Logue KD (2012) Outsourcing regulation how insurance reduces moral hazard. Mich Law Rev 111:197–248

Carpenter-Gold D (2015) Note, castles made of sand: public-interest litigation and China’s new environmental protection law. Harv Environ Law Rev 39:241–274

Cogan JA Jr (2016) The uneasy case for food safety liability insurance. Brooklyn Law Rev 81(4):1495–1553

Cohen GM (1997) Legal malpractice insurance and loss prevention: a comparative analysis of economic institutions. Conn Insur Law J 4:305–352

Cooter R, Ulen T (2008) Law & economics. Pearson

De La Rue C, Anderson CB (2009) Shipping and the environment: law and practice. Informa, London

Dou Y (Feb. 24, 2022) Shenzhen mandatory environmental pollution liability insurance achieves full coverage of environmentally high risk enterprises. Shenzhen Special Zone Daily. Available at https://baijiahao.baidu.com/s?id=1725633424073523735&wfr=spider&for=pc

Faure M (2007) Is risk differentiation on European insurance markets in danger? Maastricht J Eur Comp Law 14:83–100CrossRef

Faure M, Bruggeman V (2008) Catastrophic risks and first-party insurance. Conn Insur Law J 15:1–52

Faure M, Hartlief T (2003) Insurance and expanding systemic risks. OECD

Faure M, Heine K (2011) Insurance against financial crises? N Y Univ J Law Bus 8:117–150

Faure MG, Jing L (2012) New models for the compensation of natural resources damage. Ky J Equine Agric Nat Resour Law 4:261–314

Faure M, Jing L (2014) Compensation for environmental damage in China: theory and practice. Pace Environ Law Rev 31:226–309CrossRef

Faure M, Partain R (2019) Environmental law and economics: theory and practice. Cambridge University PressCrossRef

Faure M et al (eds) (2003) Deterrence, insurability, and compensation in environmental liability. Springer

Freeman PK, Kunreuther H (1997) Managing environmental risk through insurance. Springer, DordrechtCrossRef

Green Peace (2020) Problems and analysis of environmental pollution liability insurance in China. Available at https://www.greenpeace.org.cn/eli-report-20201207/

Guo X, Marinova D (2011) Environmental awareness in China: facilitating the greening of the economy. In: Chan F, Marinova D, Anderssen RS (eds) MODSIM2011: 19th international congress on modelling and simulation, pp 1673–1679. https://mssanz.org.au/modsim2011/D12/guo.pdf

Heimer C (2002) Insuring more, ensuring less: the costs and benefits of private regulation through insurance. In: Baker T, Simon J (eds) Embracing risk: the changing culture of insurance and responsibility. University of Chicago Press, pp 117–145

Horkovich RM et al (2013) Site pollution liability insurance. In: Environmental liability and insurance recovery. American Bar Association

Huatai Insurance Company of China (2008) Limited Premises Pollution Liability Insurance

Jaffee D, Russell T (1997) Catastrophe insurance, capital markets, and uninsurable risks. J Risk Insur 64:205–230CrossRef

Jost P (1996) Limited liability and the requirement to purchase insurance. Int Rev Law Econ 16(2):259–276CrossRef

Kaplow L (1991) Incentives and government relief for risk. J Risk Uncertain 4:167–175CrossRef

Katzman M (1988) Pollution liability insurance and catastrophic environmental risk. J Risk Insur 55:75–100CrossRef

Kiern L (2011) Liability, compensation, and financial responsibility under the Oil Pollution Act of 1990: a review of the first decade. Tulane Marit Law J 36:1–64

Kunreuther H (1968) The case for comprehensive disaster insurance. J Law Econ 11(1):133–163CrossRef

Kunreuther HC, Michel-Kerjan EO (2007) Climate change, insurability of large-scale disasters, and the emerging liability challenge. Univ Pa Law Rev 155:1795–1842

Kunreuther H et al (1993) Insurer ambiguity and market failure. J Risk Uncertain 7:71–87CrossRef

Li W et al (2020) Environmental pollution liability insurance: American experiences and Chinese practices. Chin J Environ Manag 2:50–55

Liu X (June 8, 2011) How to promote environmental liability insurance? China Insurance News Network. Available at http://www.sinoins.com/101288/101475/59505.html(China)

Ma N (2018) Construction of the legal system of environmental liability insurance and environmental risk control. Chin J Law 1:106–125

Molk P (2015) Private versus public insurance for natural hazards: individual behavior’s role. In: Gardoni P et al (eds) Risk analysis of natural hazards. Springer, pp 265–277

Moss D (2004) When all else fails: government as the ultimate risk manager. Harvard University PressCrossRef

Nagle JC (2011) How much should China pollute? Vermont J Environ Law 12:591–632CrossRef

NAIC, Environmental Insurance (last updated 7/9/2021). Available at https://content.naic.org/cipr-topics/environmental-insurance#:~:text=Issue%3A%20Environmental%20insurance%20(also%20known,liability%20and%20property%20insurance%20policies

Priest GL (1996) The government, the market, and the problem of catastrophe loss. J Risk Uncertain 12:219–237CrossRef

Seog SH (2010) The economics of risk and insurance. Wiley

Shavell S (1982) On liability and insurance. Bell J Econ 13:120–132CrossRef

Sun Q (2021) China Insurance Market Report 2021. Economic Science Press

Swiss Re (2005) Innovating to Insure the Uninsurable

Swiss Re (2019) China Liability Insurance Market Trend Report

Telesetsky A (2010) Insurance as a mitigation mechanism. Pace Environ Law Rev 27:691–734CrossRef

Thoyts R (2010) Insurance theory and practice. RoutledgeCrossRef

Van Boom WH (2008) Insurance law and economics: an empirical perspective. In: Faure M, Stephen F (eds) Essays in the law and economics of regulation - in honour of Anthony Ogus. Intersentia, Antwerp/Oxford/Portland, pp 253–276

Vaughan EJ, Vaughan TM (2007) Fundamentals of risk and insurance. Wiley

Wagner G (2007) (Un)insurability and the choice between market insurance and public compensation systems. In: van Boom WH, Faure M (eds) Shifts in compensation between private and public systems. Springer Vienna, pp 87–112CrossRef

Wagner G (2009) Tort law and liability insurance. In: Faure M (ed) Tort law and economics. Edward Elgar Publishing, pp 377–405

Wang W (2020) Research on environmental liability insurance system. JiLin University Press

Wu W (2020) The reform of the compensation system for ecological and environmental damage in China: natural resources, environmental enforcement, and legislation. Nat Resour J 60:63–102

Xue L et al (2007) Environmental governance for China: major recommendations of a task force. Environ Polit 16(4):669–676CrossRef

Yin H, Kunreuther H, White MW (2011) Risk-based pricing and risk-reducing effort: does the private insurance market reduce environmental accidents? J Law Econ 54(2):325–363CrossRef

Zhao X (2019) Developing an appropriate contaminated land regime in China: lessons learned from the US and UK, 2nd edn. SpringerCrossRef

Titel: Managing Environmental Risk Through Insurance: China
verfasst von: Qihao He
Jing Liu
Verlag: Springer Nature Switzerland
Buch: Managing Environmental Risks through Insurance
Print ISBN: 978-3-031-47601-3

Electronic ISBN: 978-3-031-47602-0

Copyright-Jahr: 2024
DOI: https://doi.org/10.1007/978-3-031-47602-0_5

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"

Premium Partner