Thursday, 29 July 2010

Infinity to help insure hydroelectric project


via Khmer NZ

Thursday, 29 July 2010 15:01 Catherine James

INFINITY Insurance has signed on as an insurer for construction of the US$412 million China Huadian hydropower project in Koh Kong province, its chief executive, David Carter, said yesterday.

Infinity will insure the project for the duration of construction – slated to last until 2014 – in conjunction with state-owned People’s Insurance Company of China, he said.

Under the terms of yesterday’s deal, PICC will largely act as a reinsurer.

“This is a very large project, and so Infinity can only take a small amount of the risk,” he said.

“The major proportion is reinsured out. Even though we do pass over quite a significant amount of risk, it does not mean that we’re in any way freed up from the whole thing,” he said.

If the reinsurer could not pay out on a claim, the responsibility would fall directly to the insurer, but that scenario was unlikely, he said.

Carter said that being brought on board by PICC was a “great result”.

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