The specialty reinsurance group Chaucer has announced the start of its new Belt and Road consortium at Lloyd’s. The consortium will initially assume political violence risks and develop future products for other business areas.
China’s Belt and Road Initiative (BRI) is the world’s largest infrastructure program with projects in the fields of transport, telecommunications and renewable energies in 65 countries. The program includes more than 2,600 individual projects valued at $ 3.7 trillion.
The Chaucer Consortium will work with China Re – the parent company of Chaucer – to provide companies operating in the BRI with substantial capacity of up to $ 400 million for political violence-related risks, including approved investment risks of the BRI Green Committee. Chaucer will lead and administer the consortium with the assistance of other Lloyd’s syndicates.
“We are fully committed to helping the Lloyd’s market develop innovative global risk products to help clients better manage their risk,” said John Neal, CEO of Lloyd’s of London. “This new partnership will increase the insurance capacity available to companies working on projects such as the Belt and Road Initiative, which is expected to be a major engine of growth in emerging markets.”
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“Since the Belt and Road Initiative was launched, the insurance industry has played an essential role in providing risk management and vital risk protection,” said Yuan Linjiang, chairman of China Re Group. “China Re has a long history of collaboration, communication and interaction with its international partners and as we embark on this new project with other leading Lloyd’s and UK companies, we are excited to show the world the combined strength of China Re and Chaucer . “
“Our new Belt and Road Consortium at Lloyd’s will enable Chinese companies and co-investors to better protect their assets from political violence across the BRI by providing direct access to market-leading risk solutions,” said John Fowle, CEO of Chaucer. “By combining our strong underwriting sense and leadership in the political violence market with China Re’s exceptional distribution network, we can offer our clients and brokers a truly unique solution by working with our Lloyd’s colleagues.”