Pei Guang, head of Shanghai Insurance Regulatory Bureau, speaks at the 2017 Shanghai Shipping Insurance International Forum on Nov 27. [Photo provided to chinadaily.com.cn]

Shanghai has basically formed a complete shipping insurance industrial chain integrating insurance companies, insurance agencies and service institutions, claimed Pei Guang, head of Shanghai Insurance Regulatory Bureau at the 2017 Shanghai Shipping Insurance International Forum on Nov 27.

By the end of 2016, the city had 58 property insurance firms running shipping insurance business, including China's only shipping-related captive insurance company and 11 shipping insurance operation centers.

Moreover, the city boasts 176 insurance agencies and a large number of institutions providing legal shipping service, average adjustment service and others.

Over the past years, its shipping insurance business has expanded from traditional vessel insurance and cargo insurance to shipping liability insurance and marine energy insurance.

According to statistics, from 2009 to 2016, Shanghai's vessel and cargo insurance premium revenue increased from 1.68 billion yuan ($254.5 million) to 3.7 billion yuan at an average annual growth rate of 11.92 percent.

In 2016, the city's vessel and cargo insurance premium revenue reached 1.1-fold of Hong Kong, Asia's shipping center.

Achievements have been made in the city's shipping insurance market and supervision system innovation, such as simplified administrative approval procedures for shipping insurance institutions and products.

Also, the Shanghai Marine Insurance Index was released last September to reflect China's marine insurance operation situations and risks, helping improve the competitiveness and independent pricing ability of the country's marine insurance sector in global competition.

Shipping insurance sector is an important aspect of Shanghai's goal of becoming an international insurance center, and it needs to provide better, more, and a wider range of insurance services for bilateral and multilateral economic trade between China and countries along the Belt and Road Initiative route, said Pei.

To achieve its goal, the city will optimize its taxation policies for the shipping insurance market. A competitive offshore insurance taxation system will be built, covering marine insurance, reinsurance, insurance brokerage, and other fields.

A strengthened communication between shipping insurance market entities and maritime judicial departments will be encouraged, aiming to turn Shanghai into an authoritative and influential judicial arbitration center in the field of international shipping insurance.

A series of financial support has been provided to help local insurance institutions develop international shipping insurance business. Nearly 30 institutions have received supportive funds of 40 million yuan.