[Photo/Shanghai Observer]

The Global Forum on Maritime Services, held at Shanghai North Bund on June 28, shone a spotlight on the development of protection and indemnity (P&I) services in China.

Marking the 40th anniversary of P&I services in China, the forum paid special tribute to the China Shipowners Mutual Assurance Association, which is the nation's largest P&I insurer and boasts an impressive 92 million gross tons (GT) in P&I Entered Tonnage since its establishment in 1984.

The association has undergone remarkable growth, expanding from 470,000 GT to its current stature, with an impressive average annual growth rate of 14.5 percent. Notably, since 2016, its growth has skyrocketed by 145.1 percent, underscoring its significant impact on the maritime insurance landscape.

China's maritime dominance is further exemplified by its fleet size, which exceeds 250 million gross tons. This total has secured the top global position and accounts for approximately one-third of the world's seaborne trade volume. The country's shipping industry plays a pivotal role in the country's international trade, managing 95 percent of its import and export traffic.

As China's shipping sector embraces digitalization and green initiatives, the forum delved into the new challenges and requirements facing P&I services. Andrew Cutler, president of the International Group of P&I Clubs, stressed the importance of continual evolution to address emerging issues like automation, digitalization, climate change, and sustainability.

COSCO Shipping outlined its vision for a greener future, with plans for 90 percent of its newly built vessels to utilize alternative fuels. President Wan Min proposed the development of P&I service products that are tailored for eco-friendly shipping, as well as innovative insurance coverage for vessels that are powered by new energy sources. Recognizing the transformative potential of technologies such as big data, artificial intelligence, and blockchain in the global supply chain, Wan emphasized the need for P&I services to adapt to digitalization trends and collaborate effectively with supply chain partners.

Xu Lirong, president of the China Shipowners Mutual Assurance Association, detailed the organization's future strategies to bolster its capabilities in management, underwriting, claims handling, and global networking. The association aims to explore international P&I service markets and collaborate with stakeholders to drive innovation, address industry demands, and foster sustainable growth in the shipping sector.

Source: Shanghai Observer