China's insurance industry should give full play to economic compensation and social management functions in order to make greater contributions to the fight against severe acute respiratory syndrome (SARS), a senior official of the China Insurance Regulatory Commission (CIRC) said Tuesday.

Wu Dingfu, CIRC chairman, made the remark while visiting two insurance companies in Beijing Tuesday.

He said that several companies had expanded hotline services and reduced the liability observation period. Over approximately one month, some 24 companies developed 52 SARS-related products and services. Several companies also made donations to medical workers and research institutions. China's insurance industry demonstrated solidarity, coordination and courage to overcome difficulties, he said.

He said that the fight against SARS has yet to be won and insurance companies should be aware of the negative impact of SARS, including reduced business, higher compensation rates and difficulties in policy sales. However, face with SARS, people's insurance awareness has increased, and the industry may thus see more rapid growth in the post-SARS period, he said.

The new products and services are expected to benefit people, promote the development of new health policies, providing more opportunities for life insurance companies.

Insurance companies will strengthen risk awareness and improve management skills, he said.

(Xinhua News Agency May 27, 2003)