Chinese shipowners can choose a stable risk insurance coverage provided by Hong Kong's Marine Specialty Risk Pool amid the Middle East war, the Insurance Authority said.
The Insurance Authority supported insurers in establishing the special war risk insurance pool last November to provide marine war risk insurance, covering vessel loss or damage caused by incidents such as war, currently backed by five insurance companies, with an initial total underwriting capacity of US$130 million (HK$1.01 billion).
Ocean Chiu Wai-yeung, associate director of general business at the Insurance Authority, said war risk insurance rates in the international market have risen significantly to around 10 times pre-war levels, and although the pool’s rates have also increased to about 5 to 10 times, the rates could still be lower.
He said the pool has underwritten over 10 vessels located in high-risk areas of the Gulf area, but there have been no insurance claims to date. He added that the pool has received more inquiries about the insurance coverage.
Chiu said the pool will attract more Chinese-capital insurance companies to join the pool, thereby enhancing overall underwriting capacity.
Gloria Leung
