China Re plans to launch the 'first domestic political violence insurance' to cover Chinese businesses involved in the construction of the Belt and Road Initiative (BRI) across the globe.

China Re is currently working on the research and development of the product and hopes to introduce it in the near future, said vice chairman and president He Chunlei, who was speaking at the Banking and Insurance Industry Routine Conference last week as reported by local publication, The Paper.

Mr He had highlighted a range of risks for Chinese companies involved in BRI projects including conventional property risk, engineering construction risks, personal accidental risk, political changes, terrorism, infectious diseases, kidnapping for ransom among many others.                                       

China Re Group has also worked together with the ‘China Security Community’ to research and develop the China's ‘first abduction risk report and risk map’ which will be released to the public in the first half of this year.

In 2018, China Re Group provided approximately CNY3tn ($0.44tn) in risk protection for the international market.

The reinsurer recently enhanced its underwriting capabilities and competitiveness by completing its acquisition of Chaucer-related companies in Australia and Dublin earlier this year which is said to be the largest cross-border business acquisition conducted by a Chinese state-owned insurer to date. The acquisitions have expanded China Re’s global reach as it now has branches in major insurance markets such as Singapore, Dubai and Denmark.

Chaucer is part of The Hanover Insurance Group, a holding company for several property and casualty insurers. China Re and The Hanover Insurance Group entered into a sale and purchase agreement on 13 September last year whereby China Re conditionally agreed to purchase 100% equity interest of Chaucer, at a consideration of $865m.