New Belt and Road consortium launched through Lloyd’s (re)insurance market
A new Belt and Road consortium has been launched through the Lloyd’s (re)insurance market for the world’s largest infrastructure programme to initially underwrite political violence risks.
The Belt and Road Initiative is a US$3.7 trillion global infrastructure development project designed to assist growth of the Chinese economy and regions including South East Asia, the Middle East and Africa.
In total, it will encompass six economic corridors across 65 countries, involving 4.4 billion people, contributing one-third of the world’s GDP and 40 percent of global trade.
The Chaucer syndicate is the lead underwriter with its parent company (China Re) and consortium partners, will (re)insure large-scale capacity of up to US$400m for political violence-related risks to companies working on China’s BRI, including approved investment risks from the BRI Green Committee.
Chaucer will lead and manage the consortium, which will focus on political violence risk for assets under construction or operation and financed through the BRI, with support from other leading Lloyd’s syndicates.
The BRI will involve different regulatory regimes, tax systems, forex controls and engineering standards with some of the harsh terrain involved raising security and insurance concerns. The BRI has 2,631 projects spanning transport, telecommunications and renewables such as solar, wind and hydro.
Lloyd’s CEO John Neal said: “We are fully supportive of the Lloyd’s market developing innovative global risk products to enable customers to manage their risks better.
“This new partnership will increase the amount of insurance capacity available to businesses working on projects such as the Belt and Road Initiative, which is expected to be a major driver of growth in emerging markets.”
Yuan Linjiang, Chairman of China Re Group, said: “Since the Belt and Road Initiative first launched, the insurance industry has played an integral role in providing risk management and vital risk protection. China Re has a long history of cooperation, communication, and interaction with its international partners, and as we embark on this new venture with other leading Lloyd’s and UK businesses, we are excited to showcase the combined strength of China Re and Chaucer to the world.”
W Denis Group arranges construction and operational insurance and reinsurance on buildings, civil infrastructure and industrial assets around the world, both as a Lloyd’s Broker and also working in the international reinsurance markets too.
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