A new home grown insurance facility aimed at protecting Chinese and Asian shipowners from the risk of war and related perils such as piracy was launched on Monday during Hong Kong Maritime Week.
Unveiled at the 5th Asia Marine Insurance Conference, the Hong Kong China War Risk Syndicate is supported by domestic insurer, Asia Insurance, part of Hong Kong’s Asia Financial Holdings Ltd.
The insurance covers marine hulls to a maximum limit of US$100m.
Winnie Wong, Hong Kong chief executive at Asia Insurance explained the reason for the move:
“We believe the time is right for such a facility to be made available for Chinese and other Asian Shipowners.
“Hong Kong and China together form one of the world’s largest ship registries. It is important that as this fleet grows, owners have a range of options available for their insurance needs.
“We aim to support Hong Kong as a leading maritime insurance market and this is a first step on our journey. This facility also strongly supports the Belt and Road Initiative, which is a primary objective of China’s overseas development.”
The Hong Kong Shipowners Association as well as the Hong Kong Federation of Insurers have welcomed the creation of HKCWRS.
Managing director of JLJ Maritime HK Ltd, Jonathan Jones said: “We are honoured to be working with Asia Insurance in the founding and development of the HKCWRS, a facility that will bring real value to Chinese and Asian shipowners.”
HKCWRS will create a specific War Risks Committee including owners, underwriters, brokers and security advisors who will join forces to discuss, review and respond to issues.