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Custom Products in China Essay

The authors claimed that interest in environmental liability insurance/product in China is insufficient. Nowadays, accidental contamination constitutes a serious threat in China as reported in the Bulletin of Environmental Situation of China in 2010 when 420 accidental environmental pollution events took a place. The authors indicated that environmental liability insurance is considered an effective approach to address environmental issues through modern insurance system. Despite the fact that improvements in this area have been seen as a result of governmental efforts, firms’ desire to purchase environmental liability insurance is still dull.

From the authors’ perspective, environmental liability insurance may help to address environmental problems through several ways such as promoting brownfield sites cleanup and reuse, allowing regulators to depend on a market-based mechanism and providing appropriate remedy of problems of underdeterrence. Moreover, positive effects of such insurance may include protecting polluters from financial collapse and guarantee the injured party compensations in case of accidental pollution. However, since its introduction during the year of 1991, environmental liability insurance in China has not been satisfactory to the polluters. In order to understand the this issue and its causes, the researchers conducted in-depth interviews in Boading, Hebei Province from July to August of the years of 2011 which involved 23 firms who were facing environmental liability risks. The purpose of this study was to investigate and identify the root causes of the insufficient demand and interest of environmental liability insurance in China. The researchers indicated that very few participants are interested in such products and concluded their results in three areas: Lack of awareness, availability of alternative risk management tools (e.g. self-insurance) and unsatisfactory environmental insurance products (due to high premium rate and limited coverage).

The authors provided suggestions and recommendations in order to address this issue which include improving relevant legal system through implementing compulsory environmental insurance, develop alternative risk management tools, such as captive insurance, and developing better environmental liability insurance products to meet the incurred’ demand by setting a reasonable premium rate and acceptable converge limits.

The authors did not clearly state the problem in the article, yet it was more obvious in the abstract. In the abstract, they stated “Although there has been development of it due to government pushing, the product is still not very attractive to potential polluters.” In fact, it is reasonable and beneficial to emphasize and re-mention the problem statement in the article. However, when developing a problem statement, the authors should avoid words such as it or they...etc because it may confuse the reader as what they relate to. For instance, instead of “it,” the writers could state environmental liability insurance. Moreover, in the problem statement, it is significant to mention all the basic elements related to the study such as who and where. A possible problem statement is: In China, environmental liability insurance demand is still weak and insufficient as such products seem to be unsatisfactory to the potential environmental polluters since its first introduction in 1991.

Like the statement of the problem, the purpose of the study was defined in the abstract but not clearly stated in the article. In the abstract, the authors stated “This study looks into this problem and aims at finding reasons for it and making some development suggestions by conducting in-depth interviews in Baoding, Hebei province in China.” The purpose of the study is well developed since it includes who, where, what and how of the study being conducted. However, as previously mentioned, the authors should avoid word such as “this problem or for it” and clearly state all the basic elements. Possible purpose statement is: The purpose of this study was to identify the root causes of the insufficient demand and interest of environmental liability insurance in China by conducting in-depth interviews in Baoding, Hebei province.

The methodology used to conduct this study and to collect the needed data was in-depth interviews which involved 23 respondents who were in charge of risk management. In fact, in-depth interviews is considered a powerful tool when collecting research-related data, yet more advanced tools may be utilized in this study to promote its methodology and then enhance the quality of its results, such as review of insurance or legal-related records, if possible. Also, the authors considered the insured’s’ perspective about the problem, but did not take into account the insurer’s point of view, which may help in providing profound information about the root causes of the issue. Further, it is believed that the sample were involved in this study is insufficient (23 participants). Thus, to understand the reasons of insufficient interest and unsatisfied products of such insurance in China, the researchers should have expanded the scope of the chosen sample.

The authors indicated meaningful suggestions that may help to address the discussed issue. They also provided solutions such as improving relevant legal system and implementing compulsory environmental insurance, develop alternative risk management tools, such as captive insurance, and developing better environmental liability insurance products to meet the insured’ demand by setting a reasonable premium rate and acceptable converge limits. However, the conclusion of the article was short and does not include all the significant points. For example, the writers did not indicate why such problem is exist, why such interest about environmental liability insurance is needed, and what are some benefits and effects of environmental liability insurance. Also, a brief description of the proposed solutions to address the issue of insufficient demand and unsatisfactory products of environmental liability insurance which is the core of the study should be stated in the conclusion as well.

Custom Products in China Essay

Code: Sample20

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