The Nationwide Forest Restoration Campaign and Its Benefit to Insurance Industry

In recent years, a large scale plan to restore all forests within 10 years is being implemented in our country.
Respected Marshal Kim Jong Un, supreme leader of the our party and people, has prioritized forest restoration as the policy of utmost urgency and aroused entire party, whole army and all the people to the forestation campaign, planting trees by himself with army soldiers.
Consequently, a joint resolution of Central Committee of Workers’ Party of Korea, National Defence Commission of DPR Korea and Supreme Headquarters of Korean People’s Army was issued and powerful headquarters were organized to monitor and control nationwide campaign. A remarkable national investment was made to renew tree nurseries, a scheme of allocating forest sections with responsibilities was enforced and strict systems for monitoring and supervision of forests and fire-prevention was put in place.

It is expected that the insurance industry will benefit significantly from this nationwide forestation. Once the forests have been restored, they will lower the occurrence rate of natural disasters such as floods and landslides in rainy seasons and also reduce the damages to buildings, crops and civil engineering completed risks such as dams, bridges, roads and railways.

In consideration of the expected benefit from forestation, Korea National Insurance Corporation will actively contribute to the forest restoration campaign and, furthermore, to develop forest insurance products in cooperation with the Ministry of Land and Environment Protection and relevant agencies. The company is also planning to adjust insurance rates and rationalize terms and conditions of property insurance, civil engineering completed risks insurance, contractor’s all risk insurance, crop insurance so as to consider forestation status more accurately in insurance and thus keep profitability of the business.