BEIJING, Feb. 23 (Xinhua)-- China’s first captive insurance company in shipping industry, COSCO Shipping Captive Insurance Co., Ltd., was established in Shanghai on February 17.
Registered in Shanghai, it is a wholly owned subsidiary of China COSCO Shipping Co., Ltd., with a registered capital of 2 billion yuan (about 290 U.S. dollars).
At the launching ceremony, the new company signed a set of cooperation agreements with other subsidiaries of COSCO Shipping and external partners.
The establishment of the company is a milestone in Shanghai and even the whole China’s shipping industry and insurance industry, as it will be the group’s insurance management platform, risk management instrument and cost management center. It will fully make use of and integrate insurance resources inside the group in a way to upgrade the group’s management capability.
Through strengthening development of captive insurance, companies are able to prevent damages resulted from natural disasters and regular operation as well as some legislation costs. Captive insurance is a kind of insurance and also an important way for companies to manage risks.
(By Yang Qi, kateqiyang@xinhua.org)
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