China P&I, recognized as the largest P&I insurer in China, has submitted its full membership application to the International Group of P&I Clubs. This application was made after the visit of Xu Lirong, the Chairman of China P&I, and other senior officials of the company to the group's headquarters in London on October 13, 2023.
Membership Application Details
The International Group of P&I Clubs announced that it has received the application from China P&I, and this application will be evaluated over the coming months based on the acceptance criteria agreed upon by the existing clubs. Nick Shaw, the CEO of the group, expressed his pleasure in welcoming the officials of China P&I to the group's office in London. The review process of China P&I's application will not affect the renewal of P&I insurances in February 2027.
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Background and Current Status of China P&I
China P&I has been operating since 1984, with its establishment in Beijing, and is currently headquartered in Shanghai. The company is recognized as the largest P&I insurer in China and the eighth largest P&I insurer in the world in terms of cargo diversity, with 104.8 million tons of cargo and 2,199 member ships. China P&I currently operates as an approved insurance association within the structure of the International Group of P&I Clubs and has reinsurance agreements with several existing clubs.
If China P&I is accepted for full membership, it will be recognized as the first member from mainland China in the International Group of P&I Clubs. The International Group currently includes 12 P&I clubs that collectively provide liability coverage for approximately 87% of the world's marine cargoes.
Internationalization Efforts of China P&I
The application for membership in the International Group of P&I Clubs is the latest step in China P&I's efforts to internationalize. In August, it was reported that Seaspan, as the first foreign shipowner, paid P&I fees to China P&I in yuan. This move introduced the Chinese currency into marine insurance, which has traditionally been dominated by the dollar and European insurance markets.
China P&I also established the Hong Kong Shipowners Mutual Insurance Association last year to strengthen its presence outside mainland China. This application is now under evaluation by the 12 member clubs of the International Group, which will determine whether China P&I can upgrade from reinsurance status to full membership.
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