Experts Shared Insights on Insurance against Political and Credit Risks
A seminar on “Belt and Road Initiative & Greater Bay Area: Risk Insurance”, co-organized by Maritime Silk Road Society (MSRS) and Savantas Policy Institute, was held today (5 June). The seminar, with 150 participants from insurance, business, academia and other sectors, provided a platform for speakers to share their expertise in risk management for investments in Belt and Road countries using the Guangdong-Hong Kong-Macau Greater Bay Area as a base, and to explain how to mitigate credit and political risks in such investment environments.
Speakers of the seminar included Mr Peter Tam, ACII, Chief Executive of The Hong Kong Federation of Insurers, and Mr Wei Jun Koh, Assistant Director, Credit, Political & Security Risks, Jardine Lloyd Thompson Ltd. CPA Australia and The Hong Kong Federation of Insurers are supporting organizations. CPA Australia also sponsored the venue.
In her welcoming remarks, Mrs Regina Ip, Co-Chair of MSRS and Chairperson of the Board of Governors of Savantas, said, “The Jing-Jin-Ji Bay Area, the Yangzi Delta Bay Area and the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) are the three coastal developmental zones which are ideal launching pads for entrepreneurs to tap into business opportunities in the Belt and Road. As the business environments of some Belt and Road countries could be challenging, our entrepreneurs need to know how to protect themselves from risks in these uncharted waters.”
“As the Belt and Road Initiative continues to expand its reach, the need for entrepreneurs to insure against political risk increases. There is a need for multinational corporations to manage political and credit risks as a matter of business strategy,” Mrs Ip said.
At the seminar, Mr Peter Tam gave a broad overview on the business opportunities in the countries covered by the Belt and Road Initiative, and the wide range of risks – political, credit, foreign exchange transaction, legal and cyber security – which investors could encounter.
Mr Wei Jun Koh explained how insurance brokers with cross-border business experience could help mitigate risks by covering financial losses and intervening to secure greater protection. He explained risks would be assessed by reference to country, sector and transaction structure and gave examples of successful intervention by JLT, in Ukraine and Russia.
In response to questions from the floor, Mr Koh advised that contracts could be enforced under the common law system if the polices were made in Hong Kong.
1. Mrs Regina Ip delivering welcoming remarks.
2. Mrs Regina Ip presenting Certificate of Appreciation to Mr Peter Tam.
3. Mrs Regina Ip presenting Certificate of Appreciation to Mr Wei Jun Koh.
4. Mrs Regina Ip presenting Certificate of Appreciation to Mr Roy Lo, Divisional Deputy President, and Ms Deborah Leung, Country Head of Greater China, CPA Australia.
5. Mrs Regina Ip taking a group photograph with speakers and representatives from supporting organizations.