Make use of insurance to avoid risks in B&R construction, Zhou Yanli

Updated: January 22, 2018 Source: Xinhua Silk Road Information Service
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Chinese enterprises should make full use of insurance to avoid risks when undertaking projects along the Belt and Road (B&R), said Zhou Yanli, former vice chairman of China Insurance Regulatory Commission (CIRC), in a forum.

Zhou noted that while the B&R Initiative has provided hard-won opportunity for Chinese enterprises’ “going global” practices, it has also brought in some unpredictable risks, including political, economic, legal and default risks.  

"Insurance provides one of the best solutions,” said Zhou, adding that the insurance industry can provide risk protection, financial support and export credit strengthening for the B&R projects. Among them, risk protection can be classified into personal risk protection, property risk protection and legal liability protection.

According to Zhou, there are strong demands for fire insurance, cargo transportation insurance, legal liability insurance and export credit insurance, while there also exists certain demand for war insurance and special insurance.

“The dynamic evaluation process related to the B&R projects at the primary stage should take these risks into fully consideration, which can ensure capital security and help conduct effective asset allocation,” said Zhou.

Editor: liuyue