China's Belt & Road Initiative: the impact on commercial insurance in participating regions

27 Mar 2017

The China-led Belt & Road (B&R) Initiative will B&R will support economic activity across all countries involved in the Initiative, and also present many opportunities for global insurers.

The B&R Initiative is expected to generate huge investments, mainly in infrastructure. It will also lead to increased trade, financial services sector growth and job creation. It is estimated that investments in B&R projects in countries outside of China will accumulate to more than USD 5 trillion in the years to 2030, with most spending on transport and energy facilities.

The construction and trade triggered by B&R in countries outside China will present many business opportunities for enterprises, contractors and other stakeholders in the associated projects. At the same time, the multi-national nature of B&R projects means stakeholders will face a wide range of risks for which they will want to mitigate by, among other measures, buying insurance.

B&R projects outside of China will generate an estimated USD 28 billion in commercial insurance premiums in the years to 2030. Engineering and marine insurers in particular stand to benefit, taking most of the estimated USD 14 billion of premiums generated during the construction phase of B&R projects. After construction, assets/facilities in operation in countries outside of China are forecast to generate another USD 14 billion in premiums, mostly for property insurers.

Read the full report here.

We use cookies to gather information that will help us provide the best possible service. By using this site, you are accepting our cookie policy.

In our ongoing efforts to improve the quality and relevance of our publications, we would like to know more about you.

* required fields

Interested in subscribing to our content? Visit our subscription page.