Background
China’s Belt & Road Initiative (BRI) is the most ambitious development project of its kind to-date. The BRI seeks to connect Asia with the European and African continents through greater connectivity and networks with the aim of improving regional integration, increasing trade and stimulating economic growth on a trans-continental scale. Vital public infrastructure, such as roads and railways, gas pipelines, power plants and ports will be built in over 60 countries, with total estimated infrastructure investment to exceed USD 1 trillion.
Risks
- Modern risks such as geopolitical, legal, credit and environmental risks can occur along the Belt & Road.
- Political instability, rioting, terrorism and conflicts, and unfamiliarity with domestic legal frameworks and regulations can lead to contractual issues and huge financial losses.
- Non-payment risks can be exacerbated by emerging markets’ vulnerability to external shocks, such as currency and commodity price volatility.
Outcome
MAS seeks to co-create new risk solutions with regional governments and the industry, and utilise these solutions on a pre-emptive basis to help governments and investors safeguard against these key risks like natural catastrophes, construction risks and political risks. The BRI Insurance Consortium will initially focus on key lines of business that play to the specialty risk strengths of Singapore’s insurance markets, with a view to ultimately be a one-stop solution for both property & casualty (P&C) insurance, and other specialty insurance.
How to Apply
For more information, parties can write to MAS at our Contact Us page.
Related News
Read the speech by Mr Lim Hng Kiang on the setting up of the BRI Insurance Consortium.