Chubb has entered into a strategic cooperation deal with China’s largest P&C insurer, PICC P&C, to take advantage of the Chinese government's "Going Out" and "One Belt One Road" initiatives.
The strategic cooperation agreement, which has a term of 10 years, will see Chubb and PICC establish dedicated underwriting and service centres – dubbed China Desks - for Chinese-affiliated enterprises across Chubb’s offices globally. Chubb and PICC will work together to insure and service China-affiliated companies overseas, as well as explore other business opportunities.
Chubb will also provide education and training for PICC personnel assigned to these China desks. In addition, PICC and its customers will gain access to Chubb's insurance operations in 54 countries and partners in nearly 150 countries, while Chubb will be able to jointly develop insurance business with some of China's largest enterprises.
PICC's commercial customers include some of China's largest enterprises, many of which have complex operations in multiple foreign jurisdictions. The Chinese insurer has total assets of approximately $72.2bn and gross written premiums of approximately $47.3bn, based on 2016 reported figures.
One Belt, One Road is a programme of investment aimed at improving infrastructure networks between Asia and Europe, underlining China's push to take a larger role in global affairs with a China-centred trading network.
Meanwhile, the Going Out policy (also referred to as the Going Global Strategy) is an effort initiated in 1999 by the Chinese government to promote Chinese investments abroad.
Chairman and CEO of Chubb, Evan Greenberg said: “For Chubb, this strategic cooperation agreement is a substantial opportunity to bring the full breadth of our capabilities and global network to bear in meeting the complex insurance needs of China’s largest and most successful companies.”
“With this agreement, PICC now has the ability to offer its clients access to our industry-leading capabilities in countries beyond China. We greatly look forward to working with our new partners.”