Development of a Biodiversity Risk Management System by Chinese Insurance Companies: Standards, Classification, and Implementation Pathways

Constructing a biodiversity risk management system constitutes a crucial pathway for China’s insurance industry to fulfill its environmental responsibilities and participate in national ecological governance, with its establishment adhering to three core criteria: policy coordination, market feasibility, and industry empowerment. Based on the degree of correlation between insured objects and ecological protection, the system can be categorized into core insurance directly safeguarding ecosystems, basic insurance indirectly preventing environmental damage, and quasi-green insurance with positive ecological spillover effects. Although China has initiated explorations in biodiversity-related green insurance, its overall development remains in an early cultivation stage. This field currently faces multiple constraints. Firstly, insufficient policy impetus and the lack of mandatory insurance requirements hinder the formation of scale effects and dampen market participants' enthusiasm. Secondly, the supporting legal framework is underdeveloped, lacking clear definitions for critical aspects such as insurance liability scope, loss assessment standards, and claims settlement mechanisms. Furthermore, the challenges in quantifying ecological value and the scarcity of historical data lead to higher product pricing. Additionally, the application of technologies like big data in ecological risk assessment is limited by constrained scenarios and immature techniques, further impeding the precise development of related products. Simultaneously, public awareness and demand for biodiversity insurance need to be awakened and stimulated. To address these challenges, this paper proposes a systematic development pathway. The immediate priority is to establish a sound legal and policy foundation, clarifying insurance liabilities and strengthening mandatory coverage requirements through legislation. Concurrently, vigorous promotion of product innovation is essential, developing new insurance types and investment-financing models linked to ecological restoration performance. On the technical front, accelerating the development of comprehensive capabilities covering data collection, analysis, and application is crucial to empower risk quantification and product pricing through technology. Ultimately, by enhancing corporate awareness of insurance participation and guiding the insurance industry to integrate more deeply into the national ecological governance system, this approach aims to provide solid financial support for strengthening ecological security barriers and achieving biodiversity conservation goals.