Recently, Qianhai Mercantile Exchange (QME) and the Shenzhen branch of PICC Property and Casualty Company Limited officially launched the “Insurance Project on QME Warehouse Warrants”, in which the first insurance policy on QME warehouse warrant was signed and became effective.

The insured for this insurance is the holders of the QME’s electronic warehouse warrants or the financial institutions providing financing.  The insurance covers all risks of loss of goods stated on the electronic warehouse warrant arising from natural disasters, theft and robbery, warehouse responsibility/warehousing obligations, etc.  The warehouses covered include all the designated delivery warehouses of QME already in use (excluding factory warehouses), so compared with ordinary property insurance, this insurance has a more comprehensive coverage and application to accommodate the needs for the development of the real economy.

The debut of warehouse warrant insurance is an important milestone to facilitate QME’s creation of a credible warehouse warrant system.  On the one hand, QME keeps polishing the warehouse standardisation system while enhancing the level of warehouse management and tightening warehouse selection criteria.  On the other hand, it fulfils the insurance company’s business risk control requirements through progressively increasing the deployment of warehouse technology and promotes the continuous innovation of insurance products to afford better coverage and protection.

Going forward, QME will continue to provide solutions to mitigate risks incurred in business innovation through introducing cooperating partners, asset management and various other means, and gradually adopt insurance as its major risk control measure to improve the security and liquidity of warehouse warrants and transactions.  Apart from these, QME will also further develop the technology empowerment system to achieve intelligent risk control in various business scenarios with the aid of IoT, intelligent recognition and blockchain technology, so as to allow insurance institutions, banks and customers to incorporate these technologies into the various components of the supply chain including trading, financing, warehousing and logistics, thereby building a credit system based on the entire ecosystem and making contributions to the exploration of a new mode to serve the real economy.