The Belt and Road Initiative (BRI) could help strengthen the insurance industries of China and the UK, it has emerged.
The Belt and Road Initiative, which was proposed by Chinese President Xi Jinping in 2013, aims to improve trade, infrastructure, and financial cooperation along and beyond the ancient Silk Road routes and stimulate growth across numerous international markets. Other countries and international organisations have signed cooperation agreements with China in connection with the BRI.
To boost British businesses participating in the BRI, London has pledged up to £25 billion (US$3.3 billion) in financial support. China and the UK have also created a bilateral investment fund with an initial funding of US$1 billion.
According to statements at a recent China-UK BRI insurance cooperation forum in London, Chinese and British businesses can expect stronger cooperation of their nations’ insurance industries.
According to Catherine McGuinness, chairperson of the policy and resources committee, City of London, the British capital is a “natural partner” of the Belt and Road Initiative, and can offer a lot to China in terms of assessing project risks and insurance.
London is always known to be one of those cities that has embraced insuring new risks. One of these innovations is the Joint Code of Practice for Risk Management of Tunnel Works. London also has significant expertise in political risk insurance, which protects equity and debt capital invested in infrastructure projects around the world, McGuinness said.
Experts are of the opinion that insurance will help improve resilience in projects under the BRI. Lloyd’s provides specialist insurance cover to businesses in over 200 markets worldwide.