Chinese companies’ demands for marine insurance will rise as the number and value of overseas projects increase under the "Belt and Road" initiative, experts of Zurich General Insurance Co said today.
Chinese contractors are taking up more advanced projects overseas in the fields of petro-chemical, mining, energy, and engaging deeper in the management and running of the projects, said Scott Yao, China head of the Marine department of Zurich.
The national "Belt and Road" strategy will boost the trend and encourage more investment into overseas infrastructure and resources projects, Yao said.
The initiative was put forward by Chinese President Xi Jinping in 2013 to boost economic link between China and regions including the Middle East, Europe, Southeast Asia, Oceania and North Africa.
Yao said expected demands for cargo insurance and affiliated Delay in Start-Up Insurance to continue double-digit growth in the following years.
Cargo insurance covers material losses during transportation while the DSU covers indirect financial losses, including additional costs and the loss of profits, from delayed construction.
As more Chinese contractors taking up projects with contract value greater than a hundred million US dollar, DSU coverage will be essential to get funding from banks, Yao added.
Shanghai Daily (subscription)
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