During the 2026 interim results conference held by PICC Group on August 31, Zhang Daoming, Vice President of PICC Group and President of PICC P&C, addressed the company's approach to catastrophe insurance claims. He emphasized that handling large-scale disaster claims is the most direct reflection of insurance's core function, and the company consistently regards its role in mitigating disaster losses and facilitating efficient claims as a key responsibility. He noted that since the onset of this year's flood season, the frequency of major disasters has increased compared to previous years.

For the first half of 2026, the company's net loss from major catastrophes stood at RMB 1.29 billion, a decrease of RMB 610 million year-on-year. However, as of the end of August, the net catastrophe losses had risen by nearly RMB 1.9 billion compared to the same period last year. In response to changing climate conditions, the company has been refining its adaptive mechanisms to better manage climate-related risks, aiming to strengthen its resilience and support the achievement of its annual profit targets. To this end, five targeted measures have been implemented.

First, in annual budgeting, the company has pre-allocated funds to absorb the financial impact of catastrophe events. To date, the actual impact of such events remains within the parameters of the annual budget. Second, in the pricing process, catastrophe costs are now fully integrated into the pricing models for lines of business most exposed to disaster losses, such as auto insurance and equipment insurance. This ensures that premium rates are set at levels sufficient to cover enhanced catastrophe protection.

Third, under the current El Ni帽o cycle, the company has optimized its underwriting policies. By leveraging historical data and catastrophe modeling, it has developed more refined underwriting portfolios segmented by industry, region, product line, and peril type, accompanied by differentiated underwriting strategies. Fourth, efforts have been intensified on risk reduction and catastrophe claims management, with a stronger emphasis on coordinated action across underwriting and claims processes before, during, and after disaster events.

Fifth, the company has strengthened cumulative risk management and reinsurance arrangements. This includes enhanced monitoring of catastrophe risk exposure, further optimization of its reinsurance protections, and improvements to internal balancing mechanisms to encourage greater proactive management of catastrophe-related costs across all operational units.