The Monetary Authority of Macau (AMCM) and the Macau Economic Bureau (DSE) is piloting a natural disaster insurance plan targeted at small and medium enterprises (SMEs).

The insurance, which will be trialled for a one-year period, covers commercial property damage caused during Signal 8 typhoons or red storm surge warnings and above, a Macau Business report said. Businesses can apply for the plan until December 31, with financial support from the Industrial and Commercial Development Fund (FDIC).

Premiums start at MOP25,000 (US$3,100), with an amount insured of MOP100,000 (US$12,400) for the lowest variant. Meanwhile, the highest plan has a premium of MOP75,000 (US$9,300) and a sum insured of MOP300,000 (US$37,200).

To assist the businesses, FDIC will cover half or up to MOP30,000 of the premium amount - whichever is lower.

According to the report, five local insurers will provide policy acceptance and compensation services. Due to the high risks associated with the product, only one reinsurer – China Taiping Insurance from Hong Kong – has agreed to cover it.

Due to the large number of claims following natural disasters such as typhoons, the AMCM will allow insurers to speed up their insurance claims procedures after a disaster.

During the claims process, following submission of all necessary documents, the appraisal results can be issued within 14 days, and the payout will be wired via bank transfer within 45 days from the effective date of the policy, the report said.