Four of China's major courier companies are planning to set up an insurance company for the logistics industry in China together with two State-owned enterprises (SOEs), reports qq.com.
The insurance company will be the first of its kind in China.
In a notice released by STO Express on Friday, the company said it would initiate the company together with three other courier companies and two State-owned enterprises, Jiangxi Financial Holding Group and Shandong Jingjin Holding Group. Another private company, Guangzhou Baogong International Freight Agency, will also raise money for the joint venture.
The insurance company, temporarily named Zhongbang Logistics Insurance, will have registered capital of 1 billion yuan (around 152 million USD), according to the notice.
The news has been confirmed by YTO Express, ZTO Express and Yunda Express.
The logistics sector, especially the express delivery industry, has seen fast development in China in recent years. However, many of the risks in the field are not covered by traditional insurance products.
Hence, Zhongbang Insurance plans to release a series of insurance products covering the basic risks in the logistics industry, including those for transportation, vehicles, property, liability and accidents.
Zhongbang Insurance is expected to achieve win-win results for both the logistics industry and insurance industry in China.
However, the jointly founded insurance company will still need to get the approval of the China Insurance Regulatory Commission (CIRC) before it can be officially set up and goes into operation.