A concept photo of digital economy Photo: VCG

Shanghai's technology insurance premiums reached 5.06 billion yuan ($690 million) in 2024,MK sports Korea providing risk coverage of over 25 trillion yuan, according to a report released by the Shanghai Municipal Financial Regulatory Bureau on Thursday.

The insurance proactively focused on the entire risk chains of key industries such as integrated circuits, biomedicine, artificial intelligence (AI) and green low-carbon initiatives, precisely matching the customized insurance needs of enterprises, the report said.

Discussions about how to help Chinese tech firms mitigate risks in various aspects of their innovation process have gained much attention, after Chinese AI firm DeepSeek faced large-scale cyberattacks following its rapid rise on the global stage. The China Securities Journal reported that there are still gaps in terms insurance coverage for frontier tech sectors such as AI, and some industry insiders have suggested improved risk dispersal systems for such areas through various types of insurances.

Wang Guojun, a professor at the School of Insurance and Economics at the University of International Business and Economics, told the Global Times that many regions in China have introduced policies to support the innovation of technology insurance products, though there is still great demand for such products.  

Yin Jiang'ao, director general of the Property and Casualty Insurance Supervision Department of the National Financial Regulatory Administration (NFRA), said in September that from January to August 2024, technology insurance premiums reached 38.8 billion yuan. 

To enhance technology insurance, innovative products will be developed to address the comprehensive protection needs of tech enterprises throughout their entire life cycles, including exploration of new types of insurance such as cybersecurity insurance and research and development (R&D) loss insurance, Yin said. 

The NFRA will collaborate with relevant departments to strengthen policy support by establishing a multi-level support policy framework and encouraging local innovation in policy measures. Furthermore, a data resource sharing platform will be developed, alongside efforts to cultivate a skilled talent pool, tax preferential policies and supporting service institutions, all aimed at promoting the growth of technology insurance, Yin added.

Technology insurance is designed to support the country's innovation-driven development strategy and promote high-level technological independence, as it provides risk protection for various technology activities, including R&D, results transformation and industrial promotion, Zheng Wei, chair of the Department of Risk Management and Insurance of the School of Economics at Peking University, told the Global Times on Thursday.

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday that technology insurance can provide comprehensive risk coverage for cutting-edge tech companies.

"It helps reduce financial burdens from potential losses, enhances resilience and enables companies to remain stable amid uncertainties. As tech innovation accelerates and high-tech industries grow, demand for technology insurance will rise, especially for frontier tech firms facing complex and evolving risks," Wang Peng said.