China Launches Its First National Plan for an 'Independent and Controllable' Marine Insurance System
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- lloyds listChina seeks more control over marine insurance, without withdrawing from the West
- ports news rusiaChina unveils 17-point plan to retain more marine insurance risk and boost yuan use
- safety 4seaChina moves to strengthen its marine insurance market
- lloyds listThe Daily View: China’s maritime strategy is about more than building ships
China published its first national plan to build an 'independent and controllable' marine insurance system, as reported by Lloyd's List, Ports News Russia and Safety4Sea. The 17-point document was issued by seven Chinese authorities, including the National Financial Regulatory Administration, the Ministry of Transport, the Ministry of Commerce and the People's Bank of China, together with the National Development and Reform Commission, the Ministry of Finance and the State-owned Assets Supervision and Administration Commission.
More retained risk and in-house pricing
The plan encourages insurers and the China P&I Club to increase the amount of risk they retain, backed by long-term reinsurance capacity and coinsurance mechanisms for larger exposures. It also promotes the development of standard marine insurance clauses in Chinese and English, a national insurance data-sharing platform, and the use of artificial intelligence to build independent pricing models based on real-time risk assessments.
Expanded coverage by vessel type and risk
The measures cover insurance throughout the life cycle of tankers, LNG carriers, large containerships, cruise ships, bulk carriers and offshore equipment. The plan also envisages additional protection for alternative fuel bunkering, battery replacement, green retrofits and autonomous navigation technologies, as well as for geopolitical risks, supply chain disruptions, cyber threats and navigation in ice-covered waters.
More yuan and international outreach
Shipyards, shipowners, traders and insurers are urged to expand the use of the yuan for policies and claims, particularly in domestic transactions and overseas operations involving Chinese companies, with banks called on to facilitate such payments. The plan also supports the China P&I Club in setting up a mutual shipowners' association based in Hong Kong and encourages Chinese insurers to expand their claims-handling networks abroad.
A gradual process ahead
Lloyd's List noted that weak underwriting capacity, low penetration of local reinsurance and the yuan's small global share mean progress will be slow, and that the guidelines set no numerical targets for risk retention or yuan usage, nor an overall implementation timeline. In an opinion column, the outlet suggested the initiative fits into a broader Beijing strategy that includes the China P&I Club's bid to join the International Group of P&I Clubs, alongside the strong growth of China's shipbuilding industry.
