Key Difficulties And Countermeasures Of Implementing Environmental Pollution Compulsory Insurance In China

In recent years,China’s environmental situation is not optimistic.Frequent mining leakage and heavy metal pollution not only severely damage the environment we depend on,but also endanger people’s health.In general,companies are unable to withstand a series of compensations brought about by pollution accidents and face bankruptcy.The result is that the government has to pick up the mess.In this way,not only will pollution not be managed in time,the government will also face a huge financial burden.In 2007,the China Environmental Pollution Loss Report issued by the World Bank: In China,the annual economic losses caused by environmental pollution amounted to 100 billion US dollars,accounting for 5.8% of the GDP.According to statistics from the National Bureau of Statistics,in the past five years,China has spent more than 870 billion yuan on environmental governance each year.Against this background,a need for a means to effectively disperse the risk of pollution and reduce the government’s financial burden and can improve the environment-environmental pollution liability insurance.China’s environmental liability insurance business can be traced back to the early 1990 s.Although the concept of environmental pollution liability insurance has not been fully implemented across the country,due to the specific environmental pollution problems in the region,some insurance companies cooperate with local environmental protection agencies to launch environmental liability insurance.In October 1991,Dalian City,Liaoning Province,officially launched the environmental liability insurance business,which is the earliest region in China to carry out this business.Afterwards,Shenyang,Changchun and Jilin were also successively launched.However,the initial stage of the business faced a series of problems such as high rates and low claims.Afterwards,various local pilots were also carried out one after another,but with little success.Or lack of legal basis,or underwriting technology has not been achieved,China’s environmental pollution liability insurance began to stand still.This paper analyzes the status of environmental pollution in China,and discusses the necessity of establishing an environmental pollution insurance system in China from the analysis results.It then combines environmental pollution liability insurance in foreign countries and China’s compulsory liability insurance in other fields to promote environmental pollution in China.Is compulsory liability insurance feasible? Then,through the interpretation of the existing environmental liability insurance and the understanding of the “Request for Comments”,the authors analyzed the resistance to compulsory environmental pollution liability insurance in China,and combined with China’s pilot experience and foreign experience to carry out path innovation.The article consists of six parts,focusing on the implementation of difficult points and the last chapter on path innovation.The following are the main contents of each chapter.The first chapter mainly discusses the research significance and research purpose of the article.China’s environmental liability insurance system has been in trial operation since 2007,and it has been 10 years since now.29 provinces(autonomous regions and municipalities)have carried out environmental liability insurance pilot projects.However,since the trial has been in a state of “say good or bad”,the rate is high,the compensation is low,and the enthusiasm of enterprises for insurance is not high.The data needed by insurance companies to develop products is difficult to collect,and a vicious circle is gradually formed.Therefore,China’s environmental pollution liability insurance has been stagnant.This article starts with the "Administrative Measures on Environmental Pollution Compulsory Liability Insurance(Draft for Soliciting Opinions)" jointly issued by the Ministry of Environmental Protection and the China Insurance Regulatory Commission in 2017.Combining with the current situation of China’s environmental pollution liability insurance,it proposes the key difficulties in the implementation of the draft,and proposes corresponding solutions..The second chapter mainly discusses the necessity and feasibility of implementing compulsory liability insurance for environmental pollution.The author tries to discuss the necessity of implementation by analyzing the current status of environmental pollution in China.The present situation of the environment in China is studied from four aspects: air quality,freshwater resources,marine resources and soil resources.In terms of air quality,in 2016,out of the 338 prefecture-level and above cities(hereinafter referred to as 338 cities),only 84 cities had environmental air quality standards,accounting for 24.9% of the total number of cities.In terms of freshwater resources,the proportion of Type I,II,and III resources is only 67.8%.These three kinds of water can be used as drinking water after processing,and the remaining 32.2% of fresh water resources cannot be used.Marine resources have improved,but due to the large number of bases,governance still has some way to go.In terms of soil resources,according to the “National Soil Pollution Survey Communiqué” published in 2014,the total rate of soil pollution exceeded 16.1% in China,and 36.3% of heavily polluting enterprises used land and surrounding sites.According to incomplete statistics,there are 100,000 pieces of contaminated land in China,and nearly 20 million hectares of agricultural land is contaminated.In the past five years,China has spent an average of 897.8 billion yuan a year on the feasibility of environmental governance,which is mainly elaborated from two aspects,foreign and domestic.Foreign countries can learn from the United States,Germany,Britain,France,Japan and other countries for reference.Because,after all,experience should be used to adapt to the current situation in China,so the focus of discussion will be on the domestic market.China mainly discusses the feasibility of China’s implementation of compulsory pollution liability insurance from the government’s policy support,experience in other fields,and pilot experiences in some regions of China.The third chapter mainly analyzes the terms of the request for drafts.The author discusses the terms of the analysis,combined with the current situation in China,focusing on the issues of insurability of gradual pollution,the scope of China’s environmental pollution liability insurance liability,insurance rates,prior risk assessment and investigation,and subsequent compensation.In the fourth chapter,the author takes up a chapter and discusses the aspects of the insurability of progressive pollution,the establishment of underwriting organizations,the damage and assessment of environmental risks,the determination of moral hazard,and the determination of rates from the perspective of seeking comments for opinions.China’s environmental pollution liability insurance liability will encounter resistance.In the fifth chapter,the author divides the countries that implement environmental pollution liability insurance into two categories.One is the combination of voluntary and mandatory,and the other is mandatory.The author of the combination of voluntary and compulsory selection chose Britain and France.Mandatory model I selected the environmental pollution insurance benchmark-the United States.After introducing the basic conditions of their environmental pollution liability insurance,they will use their advanced experience for reference.Finally propose countermeasures.The author proposes temporarily to include progressive pollution as a liability for exclusion,until China completes the supporting mechanisms and underwriting technology,etc.,and then includes it in the scope of coverage.About the insurance model The author proposes to develop China’s environmental pollution liability insurance model into a compulsory and voluntary combination of policy insurance.This type of government-led model can not only solve the problem of insufficient insurance supply,but also can use the public power of the government to force those companies with no social responsibility who are responsible for major responsibility but are unwilling to bear to assume the responsibilities that they should shoulder.In terms of environmental assessment,the author proposes to increase the penalties for people suspected of counterfeiting in the environmental assessment report,regulate the market for environmental assessment as soon as possible in terms of access standards,evaluation criteria,etc.,and improve the long-term mechanism for ex post supervision in the environmental assessment.The authors of professional underwriting agencies suggest that they should not be established separately.However,it can be composed of property insurance companies with operational experience to form a joint insurance body and establish separate insurance coverage for them.As for the moral hazard problem that prevails in the insurance market,the author suggests adopting the Hebei Province’s approach to combine green credit with compulsory liability insurance for environmental pollution.Not only can it effectively reduce moral hazard,it can also stimulate companies to take out insurance,killing two birds with one stone.