The field of artificial intelligence is expected to usher in dedicated technology insurance

Our reporter Yang Xiaohan

Recently, the Ministry of Science and Technology, the China Banking and Insurance Regulatory Commission, the Ministry of Industry and Information Technology, and the National Intellectual Property Administration jointly issued the “Opinions on Accelerating the High-Quality Development of Science and Technology Insurance to Strongly Support High-Level Scientific and Technological Self-Reliance and Strength” (hereinafter referred to as the “Opinions”). The document aims to comprehensively enhance the capacity and level of science and technology insurance services to support high-level scientific and technological independence and the building of a strong technological nation.

A relevant person from Ping An Property & Casualty Insurance Co., Ltd. told Securities Daily that the issuance of the “Opinions” will effectively promote the high-quality development of science and technology insurance in the new era, playing the role of a shock absorber and stabilizer in supporting innovation, and genuinely addressing the mismatch between the development of science and technology insurance and actual innovation needs.

Data shows that by 2025, China’s science and technology insurance will provide approximately 8 trillion yuan in insurance coverage for technological innovation, with premiums increasing by 44% year-on-year. Given the large investment, long cycles, and high risks associated with technological innovation, it has effectively played the role of a shock absorber and stabilizer.

Yang Fan, General Manager of Beijing PaiPaiWang Insurance Agency Co., Ltd., told Securities Daily that the “Opinions” create direct benefits for technology-intensive industries, especially those with high R&D investment. By using insurance mechanisms to cover risks such as R&D failures and obstacles in成果转化 (成果转化: transformation of research成果 into practical applications), it can significantly reduce innovation concerns for tech companies, such as providing risk protection for key processes like chip tape-out and AI algorithm validation.

Regarding the specific measures proposed in the “Opinions” to guide insurance funds into the field of technological innovation, a responsible department official stated that the “Opinions” fully leverage the long-term and patient capital characteristics of insurance funds, focusing on two policy measures around supporting major national science and technology projects and venture capital. First, supporting investments in major national science and technology projects and key technological fields. Encouraging insurance funds to give priority support to enterprises undertaking major national projects and strengthening investment in emerging and future industries. Second, increasing support for venture capital. Encouraging insurance institutions to follow market-oriented and rule-of-law principles, increasing funding support for venture capital institutions focusing on frontier technology fields, and implementing relevant policies to support insurance funds in venture investments.

In response, Long Ge, Deputy Director of the Innovation and Risk Management Research Center at the University of International Business and Economics, told Securities Daily that this initiative aims to break the dilemma of insurance capital being hesitant to invest in tech startups. Through reform pilots and fault-tolerant mechanisms, it adapts to their long cycles and high risks. This will guide the large-scale insurance capital to shift from “predominantly fixed income” to balanced allocation, improve service quality to the real economy, and ultimately promote a comprehensive model of “underwriting + investment + services,” deeply binding enterprises’ growth.

Looking ahead, Yang Fan said that with the in-depth implementation of the national innovation-driven development strategy, science and technology insurance, as a bridge connecting technology and finance, has broad development prospects and will become a new growth pole for the insurance industry. However, insurance companies must clearly recognize that technological risks are frontier, complex, and highly volatile, facing challenges such as a lack of historical data and difficulty in constructing pricing models. Therefore, they must adhere to prudent management principles, strengthen the development of multidisciplinary talent teams, utilize technological means to improve risk control levels, and strictly prevent underwriting losses caused by blind expansion to ensure sustainable business development.

(Edited by: Qian Xiaorui)

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