Ping An Insurance (Group) Company of China, Ltd recently presented its poverty alleviation model at the World Economic Forum Annual Meeting 2020 in Davos.
The theme of this year’s Davos Forum is ‘Stakeholders for a Cohesive and Sustainable World’, with poverty alleviation as one of the key topics.
In a statement, Ping An said that its poverty alleviation insurance scheme is a model that leverages insurance innovation to drive industrial development in impoverished areas in China and accurately connects impoverished households. By implementing the ‘credit guarantee insurance + interest subsidy’ model, risk can be shared with the government and banks, thus lowering the financing threshold for the development of local specific industries and encouraging poor households to increase production and income.
Ping An claimed that this model has already supported 70 projects in 13 Chinese provinces to date, providing poverty alleviation funds of RMB490 million (US$70.6 million) in total, which has increased the annual per capita income of 46,000 low-income people by more than RMB2,000 (US$288.30).
“Ping An continues to push the poverty eradication strategy, and has developed an innovative poverty alleviation model which includes ‘education and training, industry cultivation, one product per village, production and sales empowerment’, to further boost smart poverty alleviation in three directions: industry, health care, and education in impoverished areas,” said Chen Yao, executive deputy director of Ping An’s Poverty Alleviation Office. “Ping An will continue to promote smart poverty alleviation, fulfil corporate social responsibilities, foster social harmony and progression, and ensure the long-term sustainable development of the group.”
