A view of Longguan township, Haishu district, Ningbo, East China's Zhejiang province. [Photo/Ningbo Evening News]

Ningbo in East China's Zhejiang province recently introduced the country's inaugural forest biodiversity insurance.

The pioneering insurance product was developed through a collaboration between the Ningbo branch of PICC Property and Casualty Co Ltd (PICC P&C) and Longguan township. The insurance is designed to mitigate risks associated with species invasion and natural disasters and aims to protect the biodiversity within the township.

The insurance policy offers coverage for a range of risks during the insurance period. In the event of natural disasters, attacks by wild animals on humans, or invasion by an alien species leading to the disruption of normal organism survival and reproduction and vegetation destruction, a compensation of up to 2 million yuan ($278,574.8) will be provided.

In addition, the insurance company can allocate funds for salvage operations to restore damaged ecosystems caused by human activities like project construction, farming wastewater, harmful waste, and pesticide residue.

To ensure efficient claims settlement, the insurance company will utilize drones to monitor the extent of the losses. Collaborative investigations with the local government will be conducted to assess the damage, allowing for timely compensation payments following any disaster.

Longguan township, situated at the foot of Siming Mountain, is renowned for its diverse biological resources and boasts an impressive forest coverage rate of 86 percent. The region is home to several species under State protection, including Isoetes sinensis and the hooded crane.

As a nationally recognized town famous for its unique landscape tourism, Longguan attracts over one million tourists annually. Its thriving tourism industry provides opportunities for the integration of tourism and biodiversity conservation, making it an ideal location for the implementation of the country's inaugural forest biodiversity insurance policy.