Approval for first-ever Chinese shipping insurer
Source: Asia Insurance Review | Apr 2015
China’s first-ever insurance company dedicated to shipping insurance has been granted approval to be established by CIRC.
The new company, to be called Donghai Marine Insurance, will be based in the eastern port city of Ningbo.
The founders of the company are PICC Property and Casualty Company, Shanghai International Port Group, Ningbo Port Group, and Ningbo Development Investment Group, according to the local media.
Donghai Marine Insurance will have a registered capital of CNY1 billion. PICC Property will have a 40% stake in the company while the other joint venture partners will each hold a 20% stake. Mr Wang He, Vice President of PICC Property, will be appointed as chairman of the company. PICC Property has at least five years of experience in shipping insurance.
The establishment of the company, which had been planned for since at least 2011, is expected to be completed within a year.
A financial industry source said that although China has a major share of the world trade and shipping activities, shipping insurance in the country currently only accounts for 1.5% of the global marine insurance market, indicating that there is huge potential for this class of business in China.