SLIDE 1 PANEL DISCUSSION
CHINA’S BELT AND ROAD INITIATIVE: IMPLICATIONS ON THE SELF-INSURANCE INDUSTRY IN ASIA
LED BY KELVIN WU GROUP ASSISTANT GENERAL MANAGER, RISK MANAGEMENT & INSURANCE, INTERNATIONAL SOS TREASURER & MEMBER OF EXCO, PARIMA PANELISTS RAYMOND CHEUNG GENERAL MANAGER, INTERNATIONAL DEPARTMENT, JIANG TAI INSURANCE BROKERS, CHINA SHIWEI JIN GLOBAL PROGRAM AND CAPTIVE REGIONAL DIRECTOR ASIA, XL CATLIN EDWARD WU MANAGING DIRECTOR, CAPTIVE AND MUTUAL WILLIS TOWERS WATSON, CHINA
SENIOR VICE PRESIDENT, HEAD, CHINA CLIENT MARSH SINGAPORE PRACTICE, SERVICES,
SLIDE 2
PRESENTATION
CHINA’S BELT AND ROAD INITIATIVE : IMPLICATIONS ON THE SELF-INSURANCE INDUSTRY IN ASIA
BY SHIWEI JIN GLOBAL PROGRAM AND CAPTIVE REGIONAL DIRECTOR ASIA, XL CATLIN
SLIDE 3
China’s Belt and Road Initiative: Changing Risk Landscape
Energy Property Construction Accident & Health Liability Marine Kidnap & Ransom Terrorism Political Risk, Credit & Bond Environmental
SLIDE 4
China’s Belt and Road Initiative: Local Knowledge Matters
SLIDE 5 THANK YOU
SHIWEI JIN GLOBAL PROGRAM AND CAPTIVE REGIONAL DIRECTOR ASIA, XL CATLIN SHIWEI.JIN@XLCATLIN.COM
DISCLAIMER: This presentation should not be regarded as offering a complete explanation of the matters referred to and is subject to changes in law. It is not intended to be a substitute for detailed research or the exercise of professional judgment. The organising committee of the Asian Captive Conference cannot accept any responsibility for loss occasional to any person acting or refraining from action as a result of any material in this presentation. The republication, reproduction or commercial use of any part of this presentation in any manner whatsoever, including electronically, without the prior written permission from Committee is strictly prohibited.
SLIDE 6 PRESENTATION
CHINA’S BELT AND ROAD INITIATIVE: IMPLICATIONS ON THE SELF-INSURANCE INDUSTRY IN ASIA
BY
SENIOR VICE PRESIDENT HEAD OF CHINA CLIENT SERVICES, MARSH SINGAPORE
SLIDE 7
China’s Belt and Road Initiative: Implications on the Self-Insurance Industry in Asia
SLIDE 8 Belt and Road Projects will face the same core risks as any other large Infrastructure Project
- On time (delays = extra cost)
- On budget
- Who bears the cost?
COSTING
- Site Safety during construction
- Safe for end user during operation
- Who is responsible?
SAFETY
- What loss or damage could occur during construction
- Will final asset be delivered as specified under Contract, free of defects
- Who bears the cost?
PHYSICAL
- Top of the Global Agenda
- “Not in my backyard”
- Pressure group influence
ENVIRONMENTAL
- Delivering a bankable project
- Repayment of loan
- What part can insurance play?
EXTERNAL FINANCE
- Delivering a bankable project
- Repayment of loan
- What part can insurance play?
GEOPOLITICS
SLIDE 9 Insurance can address many risks
COSTING SAFETY PHYSICAL ENVIRONMENTAL EXTERNAL FINANCE GEOPOLITICS
General Insurance
- Marine Cargo
- Property Damage
- Business Interruption
- Third Party Liability
- Workers’ Compensation /
Employees’ Liability
- Local insurances required by law
Construction Insurance
- Construction “All Risks” Insurance
- Delay in Start-Up
- Construction Plant & Equipment
Speciality Insurance
- Employee Health & Benefits
- Professional Indemnity
- Environmental / Pollution Liability
- Performance Bond
- Supply Chain
- Cyber Insurance
- Kidnap and Ransom
- Liquidated Damages
- Terrorism Insurance
- Parametric/Weather
- Political Risks
- Credit Default
SLIDE 10
Placing captives at the core of a risk management program facilitates four key value drivers
SLIDE 11
Captive owners cite a number of reasons for maintaining a captive
SLIDE 12
Asia Pacific region shows consistent captive growth
SLIDE 13
Captives’ future challenges and opportunities: blockchain technology
SLIDE 14
Recommendation
SLIDE 15 THANK YOU
SENIOR VICE PRESIDENT HEAD OF CHINA CLIENT SERVICES, MARSH SINGAPORE YIMING.SHEN@MARSH.COM
DISCLAIMER: This presentation should not be regarded as offering a complete explanation of the matters referred to and is subject to changes in law. It is not intended to be a substitute for detailed research or the exercise of professional judgment. The organising committee of the Asian Captive Conference cannot accept any responsibility for loss occasional to any person acting or refraining from action as a result of any material in this presentation. The republication, reproduction or commercial use of any part of this presentation in any manner whatsoever, including electronically, without the prior written permission from Committee is strictly prohibited.
SLIDE 16
PRESENTATION
CHINA’S BELT AND ROAD INITIATIVE: IMPLICATIONS ON THE SELF-INSURANCE INDUSTRY IN ASIA
BY EDWARD WU MANAGING DIRECTOR, CAPTIVE AND MUTUAL PRACTICE WILLIS TOWERS WATSON, CHINA
SLIDE 17 Top 7 Main Risks in BRI (statistics from a seminar)
Political risk, personnel safety and enterprise operational risk are top three risk / challenge elements
Main Risks
Legal & Regulatory Public Relationship Enterprise Ops risk Talent Shortage Personnel Safety Cultural Difference Political Risk
SLIDE 18 Captive Solutions
Group Parent
CAPTIVE
Flexible Program Structure Consolidated Limits/ Retentions Fronting Program Reinsurance Markets Transparency & Control Power of Pricing Overseas Project 4 Overseas Project 3 Overseas Project 2 Overseas Project 1 Direct
ART (Alternative Risk Transfer), e.g. Captive, is an important solution for
- verseas investment risks, especially for those that are hard to be
covered by commercial insurers
Reduced TCOR Consolidated RM
SLIDE 19 Captive Solutions in China
Risk Manageme nt Tool Insurable Risk Cost Control Center Insurance Manageme nt Platform
1 2 3 4 5 6 Operational Information Technology Human Capital Financial Quality Products / Services Legal / Regulatory Strategic
Analysis by Source of Risk and Stratified by Risk Rank (Before Improvements)
GRS>=15 15>GRS>=10 10>GRS>=7 7>GRS>=3 GRS<3
PD EB Liability …
CAPTIVE Reinsurance
SLIDE 20 Captive Solutions in China
Some observations – contributions to BRI
- Take advantage of group risk management/ engineering resources
- Benchmark international best practice via reinsures/brokers etc.
A RM Tool
- Additional capacity provider
- Innovation risk solutions
Special Use
- Efficient claim services
- Information platform construction
Focus on Services
- Participate in overseas insurable business actively
- BRI business increase very fast
Strong Motivation
- Positioning as insurance management tool
- integration by lines or regions for cost saving and risk management
Insurance Program Integration
SLIDE 21 Chinese Captives Have More Significant Role in “Belt and Road Initiative”*
* http://china-trade-research.hktdc.com/business-news/article/The-Belt-and-Road-Initiative/The-Belt-and-Road-Initiative/obor/en/1/1X000000/1X0A36B7.htm
- Have better understanding of risks associated with overseas
investment
- Have better resources, e.g. risk management experts, to tackle risks
SLIDE 22 THANK YOU
EDWARD WU MANAGING DIRECTOR, CAPTIVE AND MUTUAL PRACTICE WILLIS TOWERS WATSON, CHINA
EDWARD.WU@WILLISTOWERSWATSON.COM
DISCLAIMER: This presentation should not be regarded as offering a complete explanation of the matters referred to and is subject to changes in law. It is not intended to be a substitute for detailed research or the exercise of professional judgment. The organising committee of the Asian Captive Conference cannot accept any responsibility for loss occasional to any person acting or refraining from action as a result of any material in this presentation. The republication, reproduction or commercial use of any part of this presentation in any manner whatsoever, including electronically, without the prior written permission from Committee is strictly prohibited.
