Hong Kong China War Risk Syndicate (HKCWRS), a new marine insurance facility aimed at protecting Chinese and Asian shipowners from the risks of war and related perils was launched on 20 November 2017.
The facility, supported by Asia Insurance, part of Hong Kong’s Asia Financial Holdings Limited, is available to shipowners in Hong Kong, China plus all Asian flag, owned, managed or chartered vessels. The insurance covers marine hulls for acts of war, piracy attacks and other perils while the maximum limit per hull is USD100m.
“We believe the time is right for such a facility to be made available for Chinese and other Asian ship owners…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 marine insurance market and this is the first step on our journey,” said Winnie Wong, Hong Kong Chief Executive Officer of Asia Insurance.
This facility also aims to support the ‘Belt and Road’ initiative which is a primary objective of China’s overseas trade development. As explained, 40% of the world’s fleet is Asian, the world’s largest ports are in Asia, particularly Hong Kong and sister ports in China; Hong Kong and the Pearl River Delta combined with ports in the Shanghai area are the key hubs from which the vessels trade.
HKCWRS will also create a specific War Risk Committee including owners, underwriters, brokers, security advisors who will come together to discuss, review and respond to issues. The Committee will take into account other similar war committees’ positions but will adopt an independent approach.
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