Swiss Re Corporate Solutions releases the One Belt One Road Whitepaper
Dear all,
China's Belt & Road Initiative, and the impact on commercial insurance
Swiss Re Corporate Solutions Insurance China together with Swiss Re Economic Research & Consulting haspublished the latest report assessing the long-term opportunities for China's commercial insurers arising from the Belt & Road (B&R) initiative. The key findings of the paper include:
· The aim of B&R is to improve connectivity across China and with the rest of Eurasia, through building a network of infrastructure facilities and expanding existing (and ancient) trade routes.
· The total infrastructure gap in countries taking part in B&R will be around USD 20 trillion in the period 2015-2030, with China accounting for more than a third of the estimated shortfall.
· The insurance premium potential from already-announced B&R infrastructure construction projects is estimated to be USD 7 billion, of which USD 5.5 billion could go to insurers in China.
· The insurance premium potential from projects that may be forthcoming in the years to 2030 is estimated to be USD 27 billion, of which USD 16 billion could be for insurers in China. Most demand will be for engineering and property, followed by liability and marine insurance. In addition, USD1.5 billion in trade credit and general cargo.
· The B&R countries present new political, economic and social risks for companies involved in infrastructure and other projects. Insurers will need to understand the risks and develop suitable products for their clients' operating in those markets, including "all-in-one" type structured solutions.
· The B&R markets stand to benefit from Chinese insurers' presence in terms of underwriting capacity, improved technical expertise and deeper understanding of changed insurance needs.
What does this publication offer you?
• Exclusive access to the knowledge from Swiss Re.
• Our Swiss Re Corporate Solutions specialists, who are available to answer any questions.
• The report may trigger new ideas you may wish to discuss with us.
Best regards,
Jingwei Jia
CEO
Corporate Solutions China
For questions or comments on this publication, please contact Ms. Chloe Wang (Tel: 021-6035 9208).