Chaucer, the London-based specialty re/insurance group, announced the launch of a new Belt and Road Consortium at Lloyd’s, which initially will underwrite political violence risks, with future solutions in development for other lines of business.
Working with China Re, Chaucer’s parent company, the consortium will provide large-scale capacity of up to US$400 million for political violence-related risks to companies working on China’s Belt and Road Initiative (BRI), including approved investment risks from the BRI Green Committee.
Chaucer will lead and manage the consortium, which will focus on political violence risk protection for assets under construction or operation and financed through the Belt and Road investment initiative, with support from other leading Lloyd’s syndicates.
“We are fully supportive of the Lloyd’s market developing innovative global risk products to enable customers to manage their risks better,” said John Neal, CEO of Lloyd’s of London. “This new partnership will increase the amount of insurance capacity available to businesses working on projects such as the Belt and Road Initiative, which is expected to be a major driver of growth in emerging markets.”
“Our new Belt and Road Consortium at Lloyd’s will allow Chinese companies and co-investors to better protect their assets against political violence risks across the BRI by providing direct access to market leading risk solutions,” commented John Fowle, CEO at Chaucer.
A combination of Chaucer’s “strong underwriting acumen and leadership position in the political violence market” and “China Re’s exceptional distribution network, enables us to deliver a truly unique solution to our clients and brokers by working with our fellow Lloyd’s syndicates,” he added.
The Belt and Road Initiative (BRI) is a major global infrastructure development project to assist growth of the Chinese economy and regions such as South East Asia, the Middle East and Africa. There are 2,631 projects with a combined value of $3.7 trillion, said Chaucer, quoting a 2019 report by Refinitiv about BRI. Projects span transport, telecommunications and renewables such as solar, wind and hydro. It is the world’s largest infrastructure program, spanning six economic corridors, across 65 countries, touching 4.4 billion people which equates to 65% of the world population, contributing one-third of the world’s GDP and 40% of global trade.
About Chaucer
Chaucer operates through Lloyd’s Syndicate 1084, Syndicate 1176 (for nuclear risks), and Chaucer Insurance Co. (for company markets). Headquartered in London, with international hubs in Copenhagen, Dubai, Miami, Dublin, Singapore and Bermuda, Chaucer employs more than 500 people worldwide, including more than 120 specialist underwriters.
Source: Chaucer
Topics Excess Surplus China Lloyd's
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