Chinese insurers to extend coverage along Belt and Road

China has achieved great progress in building a community of common destiny for insurance industry in countries along the Belt and Road.

In the past few months, more than 20 countries along the route have signed Memorandums of Cooperation with China Reinsurance Cooperation (China Re), the initiator of the community, according to Yuan Linjiang, chairman of China Re.

Yuan said that Chinese insurance and reinsurance companies will work closely with their foreign counterparts, who will provide services for local customers such as settlement of claims and contract issuing.

The cooperation network is expected to cover all relevant countries by the end of this year.

The proposal also won interest of many domestic companies, Yuan said. "The overseas market is enormous and we need to support each other in expending operations," he said.

China Re is the only state-owned reinsurance company in China. It is estimated that the company provides reinsurances worth of 60 billion yuan ($8.7 billion) for the Belt and Road Initiative annually.

On April 27, 2017, the China Insurance Regulatory Commission (CIRC), the industry's top regulator, issued a guidance to call on Chinese insurers to serve the Belt and Road Initiative.

Chinese insurers were encouraged to expand their presence in the Belt and Road regions and increase business in export credit insurance and overseas investment insurance.

Yuan said that insurance companies play an important role in the ambitious initiative. "The companies, with huge reserve of long-term and stable capitals, are themselves investors looking for potential opportunities," he said. "On the other hand, the companies should help to decrease risks for other companies and provide stable and sustainable returns for them."