Ping An P&C - Forests Carbon Index Insurance

Area characterisation:

Terrestrial

Objective:

Protect forest carbon sinks via index cover

Start/end date:

1 January 2021

Financing:

Private

Potential impacts/benefits:

RMB 15.582M carbon sink risk protection
Covers 86.7M m² of forest via satellite monitoring
Rapid claims and post-disaster carbon sink rescue

Actions:

Forest carbon-sink remote-sensing index insurance using satellite monitoring for rapid underwriting and post-disaster claims, directing compensation to carbon-sink rescue and forest cultivation across three provinces.

Organisations:

Ping An P&C

Contacts:

Case study referred by UNEP FI. For more information, please contact: info@naturance.eu.

Ping An Property & Casualty Insurance has developed a forest carbon sink remote sensing index insurance product that uses satellite technology to monitor forestry carbon sink accumulation/growth. It enables rapid underwriting, provides regular forest growth feedback and offers scientific management recommendations. The index insurance model facilitates rapid loss determination and claim settlement following disasters, with compensation directed toward post-disaster carbon sink rescue and forest resource cultivation. The product has launched in Hebei, Guangxi and Hunan provinces, providing RMB 15.582 million in carbon sink risk protection for 130,000 mu (86.7 million square metres) of forest land.