Standard Club Asia forges fresh alliance with Ping An
UK mutual teams up with insurance giant to target China's growing protection and indemnity market
Standard Club Asia has entered a joint venture with Chinese giant insurance and finance group Ping An to provide protection and indemnity insurance to local owners.
The move, which Standard Club Asia was hoping to finalise as TradeWinds went to press, mirrors similar deals that the Charles Taylor-managed Standard Club has struck with non-members of the International Group of Protection & Indemnity Clubs, such as Korea P&I and Tokio Marine.
Reinsurance facility
Ping An will provide the first $400,000 of cover through the tie-up and will also have access to the International Group's reinsurance facility via the Standard Club.
Charles Taylor will provide underwriting and claims handling services to the joint venture.
Ping An is major global insurance group, although to date its presence in the marine market has been limited.
But the move could see Ping An emerge as an alternative to China P&I as a provider of cover to Chinese owners.
Standard Asia managing director David Roberts said Ping An would be a “strategic partner” in Asia, describing the tie-up as an “exciting project".
Roberts said China now stands as the world’s second-largest shipowning nation after Greece and is growing rapidly.
He said Standard Club Asia has an edge in the market because it is not just a branch office but a registered insurance company, with diversified services including claims handling and loss prevention.
He said the experience gained by Standard Club in working with Korea P&I and Tokio Marine positioned the company well to work with Ping An.
Deeper relationship
Roberts said the joint venture will focus on the P&I market for now. However, Charles Taylor is looking to develop the relationship further with the diversified Ping An group.
Standard Club chief executive Jeremy Grose recently told TradeWinds that his strategy is to expand through collaboration projects in the Far East as part of the mutual’s diversification strategy.
Standard Club to close Lloyd’s syndicateThe Standard Club had been attempting to grow through the Lloyd’s of London insurance market, where it established the Standard Club 1884 syndicate.
However, earlier this month, that syndicate was put into run down after Standard Club and Lloyd’s management could not agree on a business plan for next year.
Ping An is ranked as China’s largest private insurance company and has branched out into banking and investment. It was established in Shenzen in 1988 and is listed in Hong Kong and Shanghai.
