Chinese express delivery consortium setting up logistics insurer
A seven-strong consortium of Chinese express delivery companies are setting up a new logistics insurer. The consortium members are: ZTO Express, STO Express, Yunda Holding, Guangzhou Baogong International Freight Agency, Jiangxi Financial Holding Group, Shandong Jingjin Holding Group, and Shanghai YTO Jiaolong Investment Development.
In a statement issued today (17 October), ZTO Express said that the logistics insurer is expected to have registered capital of approximately RMB1bn. ZTO plans to invest approximately RMB160m and take a 16% stake in the insurer.
ZTO Express said the new entity is being created because “traditional insurance providers do not provide products specifically tailored to cover basic risks in the logistics sector”.
The company added: “The logistics insurer is expected to offer a wide variety of customized products including transportation, property, vehicles, liability and accident insurance.
“The establishment of the logistics insurer is still in the preliminary stages and is subject to the approval from China’s insurance regulator and the entering into of definitive transaction documents.”
