PICC P&C, Ping An P&C, and China Life P&C have made a combined CNY15m (approx. US$2.2m) in provisional payments following a deadly 4 May fireworks factory explosion in China’s Hunan Province.
The explosion at Huasheng Fireworks Manufacturing in Liuyang, a city in Hunan Province, has killed at least 21 people and injured 61, according to local authorities.
PICC P&C and Ping An P&C each paid CNY6m (US$878,400) in provisional insurance claims, while China Life P&C issued CNY3m, according to company announcements.
Shortly after the accident, several insurers, including PICC, China Life, China Taiping, China Pacific Insurance, Ping An Insurance, and Taikang Insurance, opened expedited claims channels and proactively verified customer information. Some of them have already announced the first batch of provisional payments.
Ping An P&C said it had received two claims linked to the accident as of 6 May: one under safety production liability insurance and one under motor insurance. On 5 May, it contacted the motor insurance customer and settled the claim in full within one hour. The same day, it completed a CNY6m provisional payout under its safety production liability policy.
Ping An P&C added that it had found no related claims for life, health, pension, or annuity products, but that it would continue its checks.
China Life P&C said it established a task force shortly after the explosion. It settled a motor claim on 5 May and paid CNY3m on 6 May under a property all-risks policy to support emergency response.
PICC P&C reportedly made an emergency provisional payment of CNY6m in response to the explosion, also on 5 May.
Investigations ongoing
China is the world’s largest producer and exporter of fireworks, supplying close to 90% of the world’s pyrotechnics, with Liuyang accounting for about 60% of China’s domestic fireworks market and 70% of its exports.
Following the explosion, authorities deployed hundreds of rescuers and evacuated residents from danger zones, with Liuyang’s mayor ordering the temporary suspension of all fireworks production in the city, according to local media. President Xi Jinping also called for “all-out efforts” to find those still unaccounted for and treat the injured, and ordered a swift investigation.
The exact cause of the blast has not yet been made public and remains under investigation. The person in charge of Huasheng Fireworks Manufacturing has reportedly been detained following the blast, with investigations ongoing.
