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

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.

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China's Belt & Road Initiative