Munich Re is to set up an Asia-Pacific marine reinsurance underwriting centre in Hong Kong next year.

Global Marine Partnership CEO John Wilkinson says the centre will consolidate the company’s reinsurance business in the region.

“Given the proximity to the largest insurance markets in Asia, such as China, Japan and South Korea, we regard this location as the most suitable one,” he said.

“We also believe rapid development of the marine insurance sector in the east Asian markets and the business environment in Hong Kong are positive factors in setting up the reinsurance underwriting centre in Hong Kong.”

Marine underwriters will also be located in Singapore, Seoul and Auckland to ensure close contact with clients.

“With the presence of our marine underwriters in Singapore, we also aim to have a strong foothold in southeast Asia and this further important marine insurance hub,” Mr Wilkinson said.

Marine insurance is a key market in Asia, which is home to nine of the world’s 10 largest container ports.

The region accounts for 32% of worldwide marine cargo premium and 90% of all shipbuilding activity.

“But there is still potential for further growth,” Mr Wilkinson said. “China will continue to remain an important import-and-export nation, and domestic transit is also on the rise.

“The positive development of the economies in Japan, Indonesia and India will result in increased logistic activities, from which the marine insurance industry will greatly benefit.

“South Korea and China will also maintain a key role in the shipbuilding industry, in offshore energy construction and shipbuilding innovation.”

Of Munich Re’s €17 billion ($24.45 billion) reinsurance gross written premium last year, nearly 10%, or €1.6 billion ($2.3 billion), was generated from marine, aviation and space.