As China’s Belt and Road Initiative unfolds, the chairman of one of the community’s initiators has revealed that over 20 countries along the route have begun working out insurance agreements necessary to cover various economic activities.
Yuan Linjiang, chairman of China Re, said that Chinese insurance and reinsurance companies will cooperate with their foreign counterparts to provide coverage and other services, such as claims settlement and contract issuing for firms participating in the Belt and Road Initiative.
The insurance network is expected to reach all relevant countries by the end of this year, Yuan added.
Many Chinese firms have expressed interest in the network, said Yuan. As the overseas market is enormous, Chinese businesses must support each other in expanding operations, he stressed.
Due to the size of the ambitious economic initiative, Yuan highlighted the important role insurance firms play.
“The companies, with huge reserves of long-term and stable capital, are themselves investors looking for potential opportunities,” he told China Daily. “On the other hand, the companies should help to decrease risks for other companies and provide stable and sustainable returns for them.”
China Re is the sole state-owned reinsurer in China, and it provides around RMB60 billion (US$8.7 billion) in reinsurance for the Belt and Road Initiative each year.
On April 27, the China Insurance Regulatory Comission (
CIRC) released guidelines for Chinese insurers wishing to cover the Belt and Road.
Chinese insurers are urged to expand their presence in the regions under the Initiative, focusing on export credit insurance and overseas investment insurance.
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