| Marine insurance supports shipping industry by combating risks onthe sea. It transfers and spreads risks which are taken by shipowners andshippers during ocean transportation. Nowadays, though a large amountof countries actively cultivate their domestic marine insurance industry,the world marine industry is still highly controlled by western countries,especially by European countries. Those EU countries use theirmonopolistic position in marine insurance as an advantage to impactworld shipping as well as import and export trade.Those domestic insurance companies in China which underwritemarine insurance are also manipulated by western countries’ counterpartsbecause those companies still highly rely on European market to providethem with reinsurance. It’s a high time that we should think about how toestablish an effective domestic mechanism in order to protect and indemnify China’s shipowners and shippers. In view of this, the thesissuggested that establishing a domestic insurance market, where risk canbe spread among several syndicates through a ‘subscription system’, is afeasible solution. The ‘subscription system’ can spread high riskefficiently even without reinsurance. Thus, the shipping industry in Chinacan operate more freely and no longer constrained by western countries.After establishing a domestic insurance market, China can evendesign and use some insurance products which are more localized andsuitable to China’s own condition. China can combine hull and machineryinsurance (H&M insurance) with protection and indemnity insurance(P&I insurance) as package insurance. In this way, the advantages ofpackage insurance can be fully utilized.Though both H&M insurance and P&I insurance are marineinsurance, they still have some differences. In order to clarify the natureof the new package insurance, this thesis also analyzed the application offundamental principles of marine insurance to the package insurance toexam the feasibility of package insurance. |
PDF Full Text Request