Disaster highlights insurance risk issues

Massive insurance claims are expected to cause a significant impact on the domestic economy following the Tianjin chemical explosion two weeks ago.

The tragic incident has demonstrated the danger China faces by not diversifying its insurance risks, according to John Nelson, chairman of Lloyd's of London's reinsurance market.

He called the Tianjin disaster, which claimed the lives of nearly 200 people, a "wake-up call" for Chinese authorities who need to liberalize the country's insurance and reinsurance industry by allowing foreign firms to enter the sector.