Cosco Shipping Energy Transportation (CSET), the energy shipping unit of China Cosco Shipping Corporation, has entered into an insurance service agreement with Cosco Shipping Insurance.
Under the agreement, Cosco Shipping Insurance will provide vessel-related insurance services for CSET from July 1, 2017 to December 31 2018 with an option for additional three months.
In February, China Cosco Shipping set up its own captive insurance unit in Shanghai after the company ditched its long-term insurance partner The London P&I Club.
The new insurance unit, which is the first shipping captive insurance company in China, will provide various insurance services for the affiliate companies of China Cosco Shipping.
CSET believes Cosco Shipping Insurance will have a better understanding of the group’s insurance needs and enable the group to better manage the risks arising from shipping operations.