Hong Kong launch of war risk insurance syndicate for Asian shipowners
A NEW marine underwriting syndicate to insure Chinese and Asian shipowners against the risks of war and piracy, has been launched in Hong Kong.
The Hong Kong China War Risk Syndicate (HKCWRS) will also make assessments of risks for shipowners, recommending high security and shipboard armed guards when needed.
The new HKCWRS is supported by Asia Insurance, part of Hong Kong's Asia Financial Holdings Limited.
It is available to shipowners in Hong Kong, China plus all Asian flag, owned, managed or chartered vessels, said the company statement.
The insurance covers marine hulls for acts of war, piracy attacks and other perils. The maximum limit per hull is US$100 million.
Asia Insurance will lead the HKCWRS. A number of other high profile insurers including China Taiping Insurance (Hong Kong) Ltd are also backing the syndicate in a subscription format.
The HKCWRS has been welcomed by the Hong Kong Ship Owners Association (HKSOA) chairman Jack Hsu as well as the Hong Kong Federation of Insurers (HKFI).
Other supporters include the HK Transport & Housing Bureau and the HK Maritime and Port Board in Hong Kong as well as leading maritime law firms, banks and insurance brokers, said the press release.
Said Asia Insurance CEO Winnie Wong: "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.
"This facility also strongly supports the 'Belt and Road' initiative which is a primary objective of China's overseas trade development," she said.
War Risk insurance is not just about bombs and missiles flying and does not require a formal declaration of war but includes many other perils such as rebellion, insurrection, derelict mines and torpedos strikes, civil commotion, confiscation, restraint and detainment by a ruling power, said a company statement.
A unique feature of the insurance is the ability of insurers to give notice to reappraise the situation in the event of increased risk, it said.
HKCWRS will 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.
Backing the new agency is marine underwriter Jonathan Jones, managing director of JLJ Maritime HK Ltd.
"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," he said.