Japanese expected to lead way in fostering Asian development

The 5th Asian Shipowners Forum (ASF) will look to Japanese insurers for leadership in developing the Asian marine insurance market, outgoing chairman George Chao Sze-kwong says.

He said initially each ASF member country and region would send two insurance companies to give their views on the issue at a meeting in September. 'Japan is leading in this field and so we are looking for leadership from the Japanese insurance companies,' he said.

Sumate Tanthuwanit took over as the forum's chairman from yesterday. Mr Chao, who is also chairman of the Forum's Ship Insurance committee, said it was estimated that total insurance premiums paid in 1994 by ASF members were more than US$2.3 billion.

ASF planned to use the members' significant collective bargaining power to negotiate for lower premiums and improved regional insurance services. ASF members control more than 17,000 vessels totalling over 169 million gross tonnes and 272 million deadweight tonnes.

The ASF comprises 11 shipowners associations in the Asian region, including those from the Federation of Asean Shipowners Associations (FASA). FASA members include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Australia, China, Japan, Korea, Taiwan and Hong Kong.

Mr Chao said ASF was studying the development of the Asian ship insurance market because Lloyds had over the past few years been suffering heavy losses from its non-marine business and had penalised the marine business with higher premiums.

'We should have a market in Asia and have a fair and good rate for both insured and insurers.