Hong Kong China War Risk Syndicate (HKCWRS) launched today, aimed at protecting Chinese and Asian ship owners from the risks of war and related perils such as piracy.
The facility is available to shipowners in Hong Kong, China plus all Asian flagged, owned, managed or chartered vessels, and covers marine hulls for acts of war, piracy attacks and other perils. The maximum limit per hull is $100m.
Asia Insurance, part of Hong Kong’s Asia Financial Holdings, will lead the HKCWRS while a number of other insurers including China Taiping Insurance (Hong Kong) are also backing the syndicate in a subscription format.
“We believe the time is right for such a facility to be made available for Chinese and other Asian ship owners. 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,” said Winnie Wong, Hong Kong chief executive officer of Asia Insurance.
“We aim to support Hong Kong as a leading marine insurance market and this is the first step on our journey. This facility also strongly supports the ‘Belt and Road’ initiative which is a primary objective of China’s overseas trade development,” Wong added.
In addition, 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.
According to Asia Insurance, HKCWRS will work with all approved local brokers and agents and will aim to keep in regular contact with both owners and brokers via the Hong Kong Ship Owners’ Association, the Asian Ship Owners’ Association and other shipping associations.