Four of China's major courier companies are planning to set up an insurance company for the country's logistics industry with two state-owned enterprises.
The insurance company will be the first of its kind in China, according to a report on China.org.cn.
In a statement, STO Express, one of China's largest delivery companies, said it would establish the insurer together with three other courier companies as well as Jiangxi Financial Holding Group and Shandong Jingjin Holding Group. Another private company, Guangzhou Baogong International Freight Agency, will also raise money for the joint venture.
The proposed insurer, temporarily named Zhongbang Logistics Insurance, will have a registered capital of CNY1 billion (US$152 million), according to the notice.
The news has been confirmed by YTO Express, ZTO Express and Yunda Express.
The logistics sector, especially the express delivery industry, has seen fast development in China in recent years. However, many of the risks in the field are not covered by traditional insurance products.
Hence, Zhongbang Insurance plans to release a series of insurance products covering the basic risks in the logistics industry, including those for transportation, vehicles, property, liability and accidents.
The proposed insurance company will need to secure the approval of the CIRC for its operating licence.