LiangGang1，3 ，ZouYan l iu2 ，LiShuJing1
1.Guangzhou Institute of Science and Technology，510540，GuangZhou，GuangDong，China
2.Guangxi University of Finance and Economics,Nanning,Guangxi,530001
3.Postdoctoral Research Station of the Institute of Industrial Economics,Chinese Acad emy of Social Sciences,Beijing,100000
Abstract:In recent years,China’s rap id economic development,financia l markets are increasing ly prosperous,at the same t ime,to our country’s environmental protection is also put forward new requ irements.Based on the above background,our country launched a green insurance products,its belong to category is “green f inance”,this product can not only expand the insurance market,also can improve the leve l of insurance company prof its.However,fac ing the increasing ly ser ious environmental infringement prob lems increasing ly ser ious economic growth,has yet to establ ish meaningful green insurance system in our country,the proport ion of green insurance premium income in property insurance is less than 3%.The green insurance in our country,in general,very low success rates of p i lot.Investigate its reason,may be because the p i lot areas adopt green insurance is only a kind of l iab i l ity insurance mode l,with the current status of environmental pollut ion in our country is large.Green insurance bus iness of our country,therefore,is part icu lar ly important to study the mode l,to exp lore suitable for China’s green insurance business mode l is not only conducive to the development of low carbon economy in our country,on the other hand a lso promote the study of environmental protect ion in Ch ina market.Developing green f inance the most main is to carry out the green insurance,developing green insurance, is of great s ign ificance to the development of green,is helpful for improving the environmental r isk management system,promote the construction of green manufactur ing system,deepen the structural reform of the supp ly s ide.At present,the social from a ll walks of l ife to the green insurance understanding and d iscuss ion are most ly l imited to environmental pollut ion l iab i l ity insurance,its main development is to enhance their strength,only is to solve the prob lem of ecolog ical environment in the field of insurance mechanism is not perfect.,therefore,to promote the development of green insurance leve l,bui ld up a comp lete and comprehens ive supp ly of green insurance system,accelerat ing the formation of green insurance development,to create a good environment for the green insurance development.
Key words: green insurance; development trend; environmental protect ion
一、 Introduction
Although the 20th century witnessed the most remarkable progress in human material civilization,it also brought about unprecedented consumption of natural resources and severe damage to the ecological environment.In the past,unsustainable development models such as “pollute first,govern later” and unrestrained consumption patterns have seriously threatened human progress,civilization,and development,and even endangered human survival.Since the 1960s,academic circles,governments,and relevant organizations both domestically and internationally have begun to seriously explore the contradictions arising from traditional economic development models,striving to identify strategic approaches aligned with national sustainable development policies.The aim is to achieve economic growth while also balancing ecological and environmental protection,maintaining sustainable development,and avoiding threats to future progress.In this complex developmental context,the circular economy emerged as a new socio-economic and environmental coordination model that aligns with national sustainable development strategies.Under this model,the traditional economic growth pattern has shifted from the linear “resources-products-waste” model to a circular “resources-products-renewable resources” development model.This transition requires the circular economy to incorporate certain theoretical knowledge,methodologies,and tools.
Insurance,as an important economic instrument today—particularly the rising star of green insurance—has broad applications in the environmental field.Green insurance refers to the standard liability coverage that insurers provide when policyholders pollute water,air,land,or marine environments.Since its inception,green insurance has gained increasing favor among decision-makers due to its low operational costs and high compensation efficiency.Moreover,green insurance is a direct product that combines insurance mechanisms with environmental science.Its implementation varies by region:in China,it is known as environmental liability insurance;in the United States,it is called pollution liability insurance;and in the United Kingdom,it is referred to as environmental liability insurance and site clearance liability insurance.
Green insurance helps disperse investment risks through substantial compensation,enhancing enterprises’ability to withstand risks and avoiding bankruptcy.Secondly,under relevant laws and regulations,green insurance effectively protects the legitimate rights and interests of the public.Finally,the establishment of a green insurance system can promote the improvement of environmental protection supervision mechanisms,reshape corporate environmental awareness,and fundamentally control industrial pollution.Green insurance is a component of green finance.The Fifth Plenary Session of the 18th Central Committee of the Communist Party of China introduced the five major development concepts of innovation,coordination,green development,openness,and sharing.Subsequently,the Central Committee and the State Council jointly issued the Master Plan for the Reform of Ecological Civilization,which explicitly affirmed the successful establishment of a green financial system.The establishment and development of green finance have promoted green production methods and new energy-saving consumption patterns.At the same time,during the Hangzhou G20 Summit hosted by China in 2016,green finance emerged as a new focal point of the summit.This demonstrates that green finance is increasingly gaining attention within both domestic and international financial systems.This paper collects extensive materials related to green insurance,organizes and analyzes data,and explores the current development status and existing issues of green insurance in Liuzhou City,Guangxi Zhuang Autonomous Region.It proposes constructive suggestions for improving the green insurance system in Liuzhou,with the aim of providing significant guidance and theoretical insights for green development.
二、The Basic Theory of Green Insurance
（一）Definition of Green Insurance
Green insurance,also known as environmental pollution liability insurance,is a type of commercial insurance designed to address the issue of liability when a policyholder causes direct or indirect pollution damage to others.According to the terms of the insurance contract,it enables pollution victims to alleviate their burdens quickly and effectively,while the insurance institution provides compensation for covered incidents within the policy’s scope.Losses resulting from environmental pollution are compensated and covered by the insurer on behalf of the victim.To a certain extent,green insurance reduces the losses suffered by victims.The functions of green insurance will be discussed from three aspects below:First,green insurance can effectively disperse the operational risks of enterprises,allowing them to quickly recover from losses and resume normal production.Second,through green insurance,the social management function of the insurance mechanism can be fully utilized.Third,if an enterprise incurs losses due to environmental pollution,green insurance can provide certain economic compensation to the policyholder to protect the legitimate interests of pollution victims.Green insurance is the second environmental economic policy implemented in China following “green credit.” It can transform the socialized liability for environmental pollution damage compensation through its dual functions of economic compensation and social management.To some extent,the promotion of this insurance helps alter the illegal profits gained by enterprises from pollution in China,thereby achieving the effect of “polluter pays” in practice.At the same time,innovating environmental management mechanisms not only promotes the further growth of financial markets but also drives China’s economy toward a genuinely low-carbon and environmentally friendly path.It is undeniable that,compared to Western developed countries,green insurance products started relatively late in China.However,given China’s rapid economic development and severe environmental challenges,green insurance in China deserves and should experience rapid development.
Table 1 Comparison of Environmental Pollution Accident Liability Clauses between Green Insurance and General Liability Insurance.
（二）The Relationship Between Green Insurance and Environmental Risks
1.Environmental Risk Profile
In recent years,as China’s economic development has entered the mid-stage of industrialization,not only has the situation of traditional pollution (such as fires,floods,and sandstorms) remained severe,but new environmental risks in the context of the new economy have also continued to increase the threat of pollution.Issues like nuclear contamination,global warming,PM2.5,and electronic radiation have already deeply penetrated modern human life.According to reliable statistics,between 2001 and 2010,China experienced over 1,000 pollution incidents annually,with the number showing a year-on-year increasing trend.It was long believed that traditional pollution incidents were caused by natural climate changes.However,it was only later that scholars proposed that recent pollution events are closely linked to the development and advancement of social and economic technologies.Rapid economic development has always been characterized by high energy consumption and severe pollution.Consequently,the intensification of global warming and the frequent occurrence of earthquakes and tsunamis in recent years have become the most serious and directly harmful natural disasters affecting human society worldwide.Thus,while technological advancements are undoubtedly crucial for the progress of human civilization and the development of the social economy,finding the balance between environmental risks and societal development has become a key focus of research for scholars and countries around the world.
2.Environmental Risk Management
Risk management is a decision-making process aimed at helping individuals or organizations reduce negative impacts; environmental risk management is also a decision-making process,but it is used by individuals or organizations to mitigate adverse environmental risks.
- Macro Analysis
As an independent entity in the world,a nation may encounter various issues in the process of economic development,and environmental problems are no exception.To address environmental challenges and accelerate the development of a low-carbon economy,the government has adopted measures that serve as critical decisions for managing and resolving environmental risks.Internationally,most countries employ administrative or economic means to avoid the pitfalls of “one-size-fits-all” policies and the economic phenomenon of “market failure.” Therefore,governments primarily manage environmental risks by refining policies,advancing institutional reforms,and improving legislation.Within an appropriate environmental capacity,to strengthen institutional development,the government should focus on three key areas: pollution control and management,environmental law enforcement and supervision mechanisms,and environmental impact assessment systems.In the process of legal system construction,the government must also impose strict penalties on enterprises that pollute the environment.
(2) Microanalysis
Environmental damage risk and legal liability risk are currently the primary risks faced by enterprises during their production processes.At the same time,from a micro-level perspective,enterprises are also one of the main entities responsible for environmental risk management.Generally speaking,there are three main methods commonly used to manage corporate financing risks: risk avoidance,loss financing,and loss control.In terms of loss control,it mainly includes loss prevention and loss reduction.Currently,for corporate risk management,environmental risk is one of the many risks they face,and risk management can be applied to matrices in any way.Through the study of risk management,enterprises can promptly identify risks and conduct level assessments,and on this basis,design corresponding preventive measures or solutions.At the same time,the design of corporate strategic objectives should be based on the principle of matching costs with benefits.Only in this way can environmental risks be managed at the lowest cost.
Table 2 : Comparison of Environmental Poll ution Accident Liability Clauses between Green Insurance and General Liability Ins urance
（三）Green Insurance and Environmental Ri sk Management
In environmental risk management,green in surance demonstrates characteristics such as risk isolation,risk diversification,b ehavior monitoring and control,loss reduc tion,and uncertainty mitigation.When formulating risk management plans and makingdecisions,companies must consider various factors,including the domestic insurance industry ’s acceptance of tort liability for environmental pollution damages,the e xtent of environmental risks,the relevant legal framework,corporate responsibility systems,and their own developmental char acteristics.These considerations are inte grated into the planning of corporate gre en insurance and investment strategies.En vironmental risk is the advantage of envi ronmental insurance as a financial tool f or addressing environmental issues,a poin t that decision-makers cannot afford to o verlook.Under the framework of green insu rance risk management,companies utilizing financial tools must not only consider t heir own operational needs but also evalu ate the impact of premium payments on normal operations.The cost of premiums must account for the losses caused by environm ental pollution and the maximum loss a co mpany can bear ; otherwise,the company mayface bankruptcy or closure.
Table 3: Total Number of Disaster Incidents Caused by Global Disasters from 2005 to 2010
（四）The Role of Green Insurance in Developing a Circular Economy
1.Strengthened the efforts in environmental pollution control and supervision.
The protection of the environment requires the participation of all members of society and is not solely the responsibility of the government and environmental protection departments.The healthy development of green insurance helps foster a positive ecological cycle and strengthens environmental regulation and supervision.This can indirectly expand the number of entities involved in pollution control to some extent,making environmental protection a matter that truly concerns every individual in society.Insurance companies impose additional conditions on contracts for green insurance.Before finalizing the policy,the insurer must clearly explain the specific requirements related to pollution prevention facilities and pollution prevention responsibilities to the policyholder.The insurance company needs to conduct an in-depth investigation into the qualifications,technical capabilities,recent performance,and risk-bearing capacity of the insured enterprise.It must assess the main sources of pollution and the hazard levels of the pollutants,and based on all these factors,determine the premium rates and pollution levels.For enterprises with high contribution rates,corresponding measures must be taken to reduce the cost of environmental pollution. For insurance companies,this also strengthens their capacity for pollution prevention and involves verifying whether the company is the policyholder.
From the perspective of insurance companies,to protect their own interests,a thorough and comprehensive assessment of the insured company should be conducted before underwriting.If any potential environmental pollution risks are identified,they must be promptly addressed,and the insured company should be urged to take corrective measures.If the remediation is inadequate,the insurance coverage may be revoked.According to international experience,a mature green insurance system can not only mobilize market forces to promote the development of a low-carbon economy but also strengthen the supervision of environmental pollution.
2.Reducing the operational burden on businesses and the pressure on government governance.
With the increasingly prominent environmental issues in China,the economic losses caused by environmental pollution are growing.For enterprises,it is difficult to bear such significant economic losses.Introducing relevant environmental liability insurance to companies can not only reduce costs but also transfer the compensation for losses to insurance companies in the event of third-party liability accidents caused by environmental pollution,thereby reducing the loss ratio.On the other hand,the introduction of environmental liability insurance also serves as a form of supervision for enterprises.Insurance companies will encourage businesses to enhance their awareness of environmental protection and comply with environmental laws and regulations.As a result,losses caused by environmental pollution will be significantly reduced,and companies will improve their management of environmental pollution,increase the treatment of waste discharge,and reduce the occurrence of pollution incidents.From the government’s perspective,green insurance can alleviate the financial burden on the government,allowing it to allocate more funds to environmental protection,thus creating a virtuous cycle.This not only benefits environmental conservation in China but also promotes the development of the financial market.
3.Effectively safeguarding the legitimate rights and interests of the public and maintaining social stability.
At present,China’s socio-economic conditions continue to develop,social civilization is steadily progressing,and the quality of its citizens is increasingly improving.With the continuous advancement of social civilization and the rapid growth of the economy,coupled with vigorous advocacy by the government and environmental protection departments,public awareness of environmental protection has been strengthening year by year.However,in recent years,social conflicts arising from environmental pollution have become increasingly severe,with environmental disputes showing a yearly upward trend.There has been a significant rise in complaints related to environmental pollution,with letter-based complaints,for instance,increasing at an annual rate of 10%.The nature of environmental pollution disputes and issues has changed from the past,while the methods for pollution control are far from keeping pace with the rate of pollution.According to reliable data,since 2001,the number of environmental pollution and ecological damage incidents reported by China’s environmental protection authorities has been growing at an annual rate of 10%.Environmental pollution incidents have profoundly impacted the stable development of Chinese society,posing a potential threat.Thus,there is an urgent need in reality for an efficient green insurance system as a safeguard.By developing new services within liability insurance,including various types of environmental insurance coverage,insurers can assume corresponding compensation responsibilities.This system not only reduces environmental disputes caused by transaction costs and enables timely compensation for victims but also aligns with relevant national policy requirements,effectively safeguarding public interests and positively guiding the impact and security of socio-economic development.
三、The Current State of Environmental Pollution in China and Liuzhou
（一）The Current State of Environmental Pollution Development in China
Currently,the overall environmental pollution situation in China is deteriorating.However,localized improvements have been achieved in certain areas through environmental remediation and other governance measures,particularly in the western regions.Due to the relatively small number of industrial activities in these areas,the overall environmental pollution is not severe,resulting in better environmental conditions and lower pressure for environmental governance.On the other hand,in some long-established industrial cities,especially in the northeast and north China,environmental pollution remains severe.This situation significantly hinders nationwide environmental governance efforts,drags down the overall progress,and poses various environmental challenges.In some parts of China,haze pollution has been gradually worsening,adversely affecting the daily lives and production activities of local residents.It is difficult to fundamentally address the negative social repercussions caused by these environmental issues.In northern regions,heavy fog has become a major cause of traffic congestion and accidents.Meanwhile,water pollution and food contamination incidents frequently occur in southern areas,significantly undermining the safety and stability of residents’ lives.
Table 4 Environmental Pollution in China,2005–2010
（二）Current Status of Environmental Pollution Development in Liuzhou City
As an important industrial city in Guangxi,Liuzhou has witnessed increasingly vigorous development in its related industrial sectors in recent years,driven by the national reform and opening-up policies.However,overall,the city is currently facing severe environmental pollution,primarily reflected in air pollution.Since heavy industry serves as the leading force driving Liuzhou’s industrial development,the growth of related industries relies on the impetus provided by several large heavy industrial enterprises.Consequently,environmental pollution in Liuzhou predominantly radiates from industrial zones to surrounding areas,resulting in an extremely poor pollution situation across the city.The overall environmental conditions require improvement. Additionally,environmental pollution in the Liuzhou region is severe.The production and emission systems of some enterprises are outdated,and overall corporate cooperation and development conditions are not optimistic.Many companies exhibit weak environmental awareness,with some even lacking a sense of responsibility toward environmental pollution.This indicates that Liuzhou’s overall awareness of environmental pollution control is insufficient,and there is a lack of understanding regarding the social responsibilities of corporate development.To address the city’s environmental pollution,stronger measures are needed,along with enhanced education on the responsibilities of polluting enterprises.From 2012 to 2016,emission reductions of pollutants such as CO2,SO2,and nitrogen oxides in Liuzhou showed a significant decline,as illustrated in Figure 3-1.Meanwhile,Figure 3-2 indicates that in recent years,China’s tertiary industry has developed rapidly,while the secondary industry continues to maintain a high growth rate.Comprehensive analysis reveals that although the GDP energy intensity of Liuzhou is continuously decreasing,pollution cannot yet be entirely avoided.
Figure 1 Emissions of CO2,SO2,and Nitrogen Oxides in Liuzhou City from 2012 to 2016 (Unit: tons)
Figure 2: GDP Economic Development of Liuzhou from 2012 to 2016 (Unit: 100 million yuan)
Figure 3: Comparison of Waste Emissions and Economic Development in Liuzhou City,2012-2016
（三）The Necessity of Implementing Green Insurance in Liuzhou
China began introducing the narrow concept of “green insurance,” also known as environmental liability insurance,as early as 1990.As environmental issues in the country continued to worsen and the situation became increasingly severe,the government was compelled to place greater emphasis on environmental concerns,leading to an evolution in the concept of green insurance.Today,green insurance is no longer limited solely to environmental pollution liability insurance.It also includes a series of new insurance services related to ecological civilization construction carried out by environmental insurance companies,primarily aimed at addressing environmental protection and the advancement of ecological civilization.Currently,insurance companies utilize their risk management and capital financing functions to help enterprises prevent environmental risks,encourage them to implement risk prevention measures,reduce the incidence of environmental pollution accidents,and allocate insurance funds to green and environmentally friendly industries.It is evident that green insurance plays a crucial role in building an ecologically civilized and harmonious society.In Liuzhou City,Guangxi Zhuang Autonomous Region,industrial development ranks among the highest in the region,but it has also placed significant pressure on the local environment.The implementation of green insurance in Liuzhou is still in its early stages,with policies,laws,and regulations being underdeveloped.There are still many shortcomings in the protection of the ecological environment.Therefore,this paper analyzes the issues with green insurance in Liuzhou from both theoretical and practical perspectives and proposes targeted recommendations to promote the development of green insurance in the city.
四、Analysis of the Current Status and Causes of Green Insurance Development in Liuzhou
In recent years,with the development of national environmental legislation and regulations,green insurance in the Liuzhou region has seen improved development conditions.Although significant progress has been made in the overall development of green insurance in Liuzhou,the state of green insurance development among enterprises remains unsatisfactory.The specific institutional frameworks and regulations for green insurance development between enterprises are still inadequate,and there is a lack of established development rules governing green insurance systems among enterprises.Regulations regarding penalties for environmental pollution remain unreasonable,and to a large extent,the management and corresponding punitive measures between enterprises are still incomplete.Particularly,there are significant governance loopholes in defining the actual responsibilities of enterprises in environmental pollution incidents.The institutional design for corporate development still requires comprehensive consideration,yet there are no well-defined regulations concerning the actual development systems for enterprises.Therefore,it can be concluded that the overall development level of green insurance in Liuzhou is not high and still requires the establishment of institutional regulations and the specific implementation of relevant penalty mechanisms.This study provides an in-depth analysis of the current state of green insurance in Liuzhou and examines its causes from multiple perspectives.
（一）The operating costs of insurers are relatively high.
Liuzhou is an industry-oriented city where environmental pollution tends to spread from industrial parks to surrounding areas,resulting in a severe pollution situation across the entire city.This makes the technical challenges of environmental risk identification and quantification particularly daunting.Moreover,production sites,methods,and processes vary among enterprises in Liuzhou,leading to differing levels of environmental threats.Environmental pollution incidents often exhibit characteristics such as latency,long-term effects,and cumulative impacts on both humans and nature.This necessitates that insurance companies,when underwriting policies,employ professional environmental technologies and specialized knowledge to conduct strict on-site surveys and assessments of relevant indicators for enterprises in different locations.On the other hand,the factors contributing to environmental pollution are numerous and complex.Claim settlements require significant human,material,and financial resources for liability determination.According to China’s Insurance Law,these costs are borne by the insurance companies.All these factors contribute to excessively high operational costs for insurers,increase their business risks,and are highly unfavorable to the future development of green insurance services.
（二）Enterprises lack the motivation to purchase insurance.
Currently,green insurance is often used by companies as a risk-pooling mechanism during their participation process,intended to cover high compensation costs when certain enterprises encounter problems.However,an investigation into major medium and large-sized enterprises in Liuzhou City revealed not only a low participation rate but also a relatively small scale of green insurance coverage.As a result,it becomes more difficult to disperse environmental risks and share losses.Against this backdrop,survey results in our city indicate that most medium and large-sized chemical enterprises remain hesitant about purchasing domestic green insurance.They have limited understanding of the substantive aspects of green insurance and are unclear about the operational procedures.These issues,to varying degrees,negatively impact enterprises’ motivation to purchase insurance.
（三）The standards for green insurance claims need to be improved,and the overall claim settlement rate is not high.
The overall development of green insurance in Liuzhou City has been progressing at a slow pace.In particular,the actual claim settlement rate for environmental-related insurance is not very high.This is primarily due to significant disparities in the specific circumstances of China’s insurance industry development,as well as substantial differences in the specific institutional regulations governing green insurance payouts.As a result,it has been difficult to establish a fundamental framework for green insurance claim settlements.Consequently,there remains considerable controversy surrounding the actual payout rate of green insurance in Liuzhou City,and the implementation of an insurance system that genuinely involves green insurance payouts faces numerous challenges.In practice,disputes regarding the development of green insurance often diverge significantly from actual developmental realities.Insurance claim settlements require a comprehensive analysis of relevant evidence,environmental systems,and environmental theories,integrating institutional analysis with theoretical frameworks.At the same time,they must be based on the development of enterprises,systematically analyzing the institutional settings for insurance claim settlements among companies,with specific claim settlement systems serving as the criteria for determination.
（四）The relevant legal and institutional provisions regarding green insurance are not well-developed.
China introduced its green insurance system relatively late,and the system remains underdeveloped with inadequate legal regulations.Therefore,in future practices related to green insurance,China should continuously refine and reform the system.At the same time,it is essential to draw on advanced theories and systems from other countries while using the current development status of green insurance as a foundation for insurance analysis and the establishment of specialized laws and regulations.By continuously enriching the legal framework for green insurance and making specific provisions and analyses based on the current green insurance models and development status,China can better enhance the development and practice of its green insurance system,thereby enriching the evolution and institutional setup of related green insurance mechanisms.The lack of comprehensive laws and regulations has failed to create an institutional foundation for corporate social responsibility,and the awareness of lawful operation among enterprises still needs improvement.
Table 5: Comparison between Compulsory Liability Insurance Model and Voluntary Liability Insurance Model
（五）The insurer undertakes significant risks,and the government’s policy support is insufficient.
The Chinese government’s support for green insurance is insufficient,with a limited number of policies related to the establishment and institutional backing of green insurance systems.National support for green insurance remains inadequate,and public understanding is low,making it difficult to fundamentally align with the social policies and government funding required for the domestic promotion of green insurance.While regulations related to environmental protection have been continuously refined,the transformation of systems addressing environmental pollution has been slow,failing to meet the demands of modern development.Significant controversies still exist regarding the basic institutional frameworks.Government support is of great significance for the rapid promotion and widespread adoption of green insurance,as it can enhance corporate social responsibility in practice.
五、Thoughts and Countermeasures for Promoting the Development of Green Insurance in Liuzhou
（一）Increase the promotion of green insurance and enhance the level of green insurance development.
Green insurance uses a fund formed by the participation of multiple enterprises to cover the high compensation costs of a few.According to surveys,in Liuzhou City,the number of enterprises participating in this program is relatively low,and the scale of green insurance itself is small.At the same time,it is very difficult to disperse environmental risks and allocate losses,as polluting enterprises lack the sufficient capacity to purchase green insurance.Research conducted by the Liuzhou Insurance Association indicates that many large and medium-sized chemical enterprises in China still have various doubts about green insurance.They lack understanding of its purpose,significance,and specific operational procedures,all of which significantly dampen their enthusiasm for purchasing green insurance.
（二）Design innovative and diversified insurance products to build a comprehensive green insurance supply system.
The first step is for insurance companies to scientifically determine premium rates based on policies,categorize different types of environmental pollution,and flexibly apply reward and penalty mechanisms for different premium rates and insurance compensation systems.This will create a fair and reasonable premium platform for enterprises with varying risk levels,strongly motivating both low and high environmental risk enterprises to actively purchase insurance.At the same time,the variety of green insurance products should be expanded,and the scope of corporate insurance liability planning should be increased to encourage enterprises to actively purchase green insurance for risk transfer. Next,it is essential to actively conduct environmental risk assessments and collect data on environmental economic losses as much as possible.In the long term,preparations should also be made to develop more green insurance products,and efforts should be intensified to cultivate professionals in environmental risk assessment and loss determination for pollution incidents. From a long-term perspective,the coverage of China’s green insurance mechanism is relatively narrow,currently limited mainly to sudden pollution incidents.Therefore,it is necessary to expand the insurance coverage to include civil liability compensation for third-party victims,encompassing frequent,cumulative,and discharge-induced pollution. Since China’s green insurance investment started relatively late internationally and lacks experience,coupled with the stringent requirements for identifying cumulative environmental liability incidents,calculating premium rates,and determining compensation amounts,a step-by-step strategy can be adopted in the policy formulation process.Initially,focus can be placed on developing coverage for insurable sudden risks,and once green insurance matures,coverage can be extended to cumulative environmental damage risks.Additionally,innovative insurance types such as solar radiation index insurance and photovoltaic module efficiency insurance can be integrated into green insurance.Successful experiences from agricultural insurance and catastrophe insurance can also be referenced to establish insurance and co-insurance mechanisms.
（三）Transform government functions and provide policy and financial support.
From the government’s perspective,it is necessary to establish and improve relevant laws and regulations as soon as possible,severely crack down on enterprises that cause environmental pollution,and impose strict penalties.High-pollution and high-risk enterprises in the context of green insurance should be mandated through legal and regulatory frameworks to affirm the role of green insurance in reducing liability compensation and helping green enterprises mitigate environmental risks.At the societal level,efforts should be made to strengthen the promotion of ecological and environmental awareness,leveraging the government’s influence and appeal to popularize green insurance,and encouraging public supervision of enterprises.Additionally,insurance companies should receive operational subsidies to incentivize their engagement and enhance their underwriting confidence.
六、Conclusion
In summary,internationally,green insurance typically refers to various insurance plans related to environmental risk management,which can serve as an essential tool for the sustainable development of the insurance industry.As Liuzhou is an industrial city,its industrial growth is inevitably accompanied by environmental pollution.Therefore,it is particularly important to study the development of green insurance,using Liuzhou as a case study.
In recent years,with the development of national environmental legislation and regulations,green insurance in the Liuzhou region has seen significant progress.Despite considerable improvements in the overall development of green insurance in the area,the current state of green insurance adoption among enterprises remains unsatisfactory.Several issues persist in the development of green insurance in Liuzhou,such as insufficient legal frameworks and enforcement,which fail to adequately stimulate related insurance demand.Additionally,the lack of specialization among market participants and the limited appeal of insurance products further hinder progress.In light of these challenges,this study proposes a three-pronged approach to address the situation: intensifying efforts to promote green insurance to enhance its development,designing innovative and diversified insurance products to establish a comprehensive supply system,and transforming government functions to provide policy and financial support.
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