One Belt, One Road Project May Boost Marine Insurance Needs
CHINA’S One Belt, One Road initiative will greatly increase marine insurance requirement in both construction- and trade-related businesses, according to a senior industry official.
According to MANA, The Belt and Road project is Chinese president Xi Jinping’s flagship transportation project, which promises huge infrastructure investments to improve logistics links between Asia, the Middle East, Europe and Africa.
“Billions of dollars will be invested in projects triggered by wave of construction and trade liberalisation, which will present immense opportunities for insurance and risk solutions,” International Union of Marine Insurance vice chairlady Agnes Choi said at an industry event.
On the construction side, Ms Choi said marine insurers can look for opportunities related to project cargoes and “delay in start-up” coverage.
Demand for general cargo insurance would also increase, according to Ms Choi, in line with the supposed trade boom resulting from the Belt and Road project.
The potential for business expansion is huge as most of the economies within the project's scope have less than a 1% general insurance penetration rate, added Ms Choi, citing AM Best data.