Firms to cooperate on forestalling risks

CHINESE and British companies anticipate more cooperation in insurance to forestall risks as both sides are set to deepen coordination in projects under the Belt and Road Initiative, speakers told a high-profile Sino-UK BRI insurance cooperation forum held on Monday in London.

The UK capital, as a natural partner for the BRI, has a lot to offer for cooperation with China in assessing project risks and insurance, said Cetherine McGuinness, chairman of Policy and Resources Committee, City of London.

In insurance specifically, the London market is “a leader in innovative product development and has historically embraced insuring new risks,” McGuinness said.

Proposed by President Xi Jinping in 2013, the BRI aims to achieve policy, infrastructure, trade, financial and people-topeople connectivity along and beyond the ancient Silk Road trade routes, thus building a new platform for international cooperation to create new drivers of growth.

So far, over 100 countries and international organizations have responded positively to the BRI and pledged their support. More than 80 countries and international bodies have signed cooperation agreements with China.

Yuan Linjiang, chairman of the China Reinurance Corporation, said insurance and assessment of risks are extremely important considering the complexity of political, economic and cultural situations in countries along the BRI.

Full awareness and prediction of risks are necessary for governments, companies and individuals, said Yuan, adding insurance and reinsurance are the best ways to divert and minimize risks of projects.

Yuan also called for the establishment of a joint insurance mechanism to deflect major risks as a single company may not be able to cover the giant projects under the initiative with enormous investment and long construction period.