Ping An, the largest insurer in Asia, has launched its first ocean carbon sink index insurance policy. The policy is part of an initiative to help protect marine ecological systems, an ongoing environmentally conscious effort made by the insuring giant since 2021.
The policy was launched through Ping An’s property and casualty insurance (P&C) division on Tuesday. It was released specifically for the Chinese coastal city of Dalian, in the north-east. A pilot project in 2021 involves forest carbon sink remote sensing index insurance, also launched by Ping An.
The ocean carbon sink insurance policy will provide coverage for protection of kelp, shellfish, and algae within a certain area. The policy provides CNY400,000 (US$58,336 at the time of writing) for an area covering 8,867 square meters.
In a press release from Carbon Pulse, Ping An said that this newly launched policy builds upon the insurer's carbon sink insurance coverage for terrestrial and marine ecosystems, including forests, mangroves, and grasslands. This ocean carbon sink index insurance in the city of Dalian is the insurer’s first foray into the field of ocean carbon sink.
“Ping An will provide compensation when specific changes in the marine environment damages local species such as kelp, shellfish, and algae and leads to the weakening of the carbon sink,” the statement said.
Ping An’s policy also seeks to enhance ocean CO2 sequestration capacity by encouraging the fishing industry to protect and repair marine ecosystems.
The Chinese insurer also remains committed to ESG principles in its insurance business to create sustainable insurance products. As of November, their P&C division provided over CNY174 trillion in green insurance coverage to promote green development.
“We will continue to develop more agricultural insurance products for ecological and environmental protection, as well as explore different pathways to achieve low carbon transformation for insurance services,” said Jing Hua, P&C director for Ping An. “We will fully support the development of carbon sink forests and carbon sink fisheries, providing comprehensive risk protection for carbon sink resources to help China achieve its ‘dual carbon’ goals.”
Ping An recently earned its seventh consecutive Most Valuable Insurance award from Brand Finance, with the insurer boasting a brand value of US$47.7 billion.
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