of the world are subject to different levels of loss from natural
disasters such as windstorm, hail, earthquake, flood, etc. There
is neither necessarily the rating information nor the insurance
availability that exists in the US, and insurance terms and conditions
are different. Theft and vandalism exposures can be higher than
what we are accustomed to as well. Attention must be given to the
question of what currency losses will be paid in, and insurance
limits will need to be carefully monitored in a high inflation environment.
Personal property being shipped to and from the US needs to be insured
in transit, and control over the insurance should be maintained
if possible. If the transit insurance will be handled by the foreign
party, the sale should be on terms whereby risk of non-insurance
or poor insurance falls to the party arranging the coverage, not
to the innocent party.
China has severe
exposure to earthquake, flood and hail. The country has had 15 earthquakes
7.0 or greater in magnitude, and four 8.0 or greater, since 1900.
Anyone placing assets in China must understand the awesome relevance
of these statistics. In addition, China’s great rivers periodically
inundate surrounding areas, creating loss of life and property.
Location of assets, avoiding concentration of assets in single locations,
and placing of the proper insurance will be critical measures for
Assets are also
subject to political risk, a separate section of this site.
We will work
with you as a member of your team, identifying risks to assets and
designing control and finance techniques (including insurance) so
that your assets can be protected as they should be.
are not fit to lead an army on the march unless
we are familiar with the face of the country – its mountains
and forests, its pitfalls and precipices, its marshes and swamps.”
Tzu, ancient Chinese warrior and philosopher