Recently, following review by the China Insurance Regulatory Commission (CIRC), Guangdong Yuedian Property Insurance Captive Co., Ltd. (in preparation) (hereinafter referred to as "Yuedian Captive") was approved for establishment, marking that the first power-industry captive insurer in China has officially entered the preparatory stage. This is the fourth captive insurer approved in mainland China, following CNPC Captive Insurance Co., Ltd., China Railway Property Insurance Captive Co., Ltd. and COSCO Shipping Property Insurance Captive Co., Ltd., and also the first captive insurer of a provincial state-owned enterprise approved for preparation in China.
It is understood that, as the strongest and largest power generation enterprise in Guangdong Province, Yuedian Group's establishment of a captive insurer is an important measure in response to the national innovation-driven development strategy, and an important demonstration of its active expansion into related diversified industries. The preparation and establishment of Yuedian Captive will closely follow Yuedian Group's overall development strategy, rely on its core business, extend the industrial chain and enhance the value chain. It will be committed to improving and upgrading Yuedian Group's comprehensive risk management and disaster prevention and loss mitigation systems, genuinely giving play to the risk management function of insurance, continuously improving the enterprise's risk control capabilities, and constantly promoting the quality and efficiency of its assets. Once established, the captive insurer will serve as the group's internal insurance institution, undertaking insurance business management and quantitative risk management functions, which is of great significance for the group in reducing the total cost of risk, innovating risk response measures, improving risk control capabilities and strengthening Yuedian's financial segment.
It is also understood that, according to CIRC documents, Yuedian Captive will be registered in the Nansha Free Trade Zone of Guangzhou, making it the first captive insurer approved by CIRC to be registered in a free trade zone.
Source: Yuedian Group 2016-12-28