China Unveils 20 Measures to Boost Sci-Tech Insurance Self-Reliance

On Monday, several Chinese government departments announced a comprehensive guideline that introduces 20 measures aimed at enhancing the sci-tech insurance ecosystem. This initiative is set to foster high-level self-reliance and strength in the field of science and technology, addressing the pressing needs of technological innovation.

The Ministry of Science and Technology (MOST), along with the National Financial Regulatory Administration (NFRA), the Ministry of Industry and Information Technology, and the China National Intellectual Property Administration, jointly issued this guideline. The articulation of these measures reflects a collaborative approach to invigorate the nation’s technological landscape.

Central to the guideline is the enhancement of insurance support across several critical areas, specifically targeting national science and technology missions, technology-driven small and medium-sized enterprises (SMEs), and vital industrial sectors. Importantly, it also aims to improve the range of sci-tech insurance products and services, alongside better investment of insurance funds and stringent regulatory protections.

The guideline underscores the role of sci-tech insurance as a pivotal buffer and stabilizer for innovation, noting the importance of aligning insurance services with the actual demands of the sector. By doing so, it intends to elevate the capacity of the insurance sector to sustain high-level self-reliance in science and technology, key for the establishment of a strong sci-tech nation.

To address significant national technological initiatives, the document calls for the establishment of a national coordination mechanism aimed at bolstering insurance support for essential technological innovations. This initiative particularly focuses on strategic regions such as the Beijing-Tianjin-Hebei area, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, which serve as vital international innovation hubs.

To facilitate access to sci-tech insurance, China plans to promote more user-friendly insurance solutions tailored for technology-based SMEs. This includes expanding coverage and introducing flexible options that align with modern commercialization models, such as 'use first, pay later' schemes.

Innovation remains a key focus, with the guideline targeting advanced sectors like artificial intelligence, integrated circuits, quantum technology, and brain-computer interfaces. It seeks to enhance product development, underwriting, claims services, and overall operational ecosystems within the insurance sector.

The guideline offers clarity on crucial institutional questions such as what aspects of technology should be insured, the methodologies for insurance, and the types of entities that should receive coverage. Dong Shaopeng, a senior research fellow, remarked that this provides a more robust framework for the sci-tech insurance domain.

Dong emphasized the importance of insurance in managing risks and compensating losses associated with the innovation journey, particularly for tech firms caught in cycles of substantial initial investments and unpredictabilities.

As of September 2025, China's insurance industry has delivered over 10 trillion yuan, equivalent to approximately 1.39 trillion dollars, in risk coverage catering to tech research, development, and commercialization endeavors. This data, provided by NFRA, highlights the financial backing for the technological sector.

The first three quarters of 2025 witnessed a 30 percent rise in sci-tech insurance premium income compared to the previous year, a remarkable achievement that far outstrips the broader industry average. This surge in premium income has enabled insurers to redirect their funds towards technological innovation, thus creating a nurturing environment for venture investment and introducing fresh capital into the innovation ecosystem.

Despite the positive trajectory, challenges remain, especially concerning sustainable funding sources, effective actuarial models, and long-term operational viability for insurance providers. The necessity for insurers to adeptly manage risks associated with technology companies while ensuring prudent practices and preserving capital growth has been underscored by experts.