(Yicai) Oct. 14 -- A one-stop insurance service was launched in Horgos, China’s northwestern Xinjiang Uygur Autonomous Region, to help Chinese freight companies operating across borders arrange coverage and handle claims in China and obtain assistance with accidents overseas.

The new insurance service, released on Oct. 9, connects insurance purchased in China with overseas accident assistance and claims handling at home, said Dong Jinan, deputy general manager of PICC Property and Casualty's branch in Ili Kazakh Autonomous Prefecture. The firm will work with overseas agents and loss adjusters to inspect damage and assess losses, while claims will be handled in China.

The Horgos area of the China Xinjiang Pilot Free Trade Zone worked with PICC Property and Casualty to develop the service after companies repeatedly raised concerns about arranging insurance abroad, said Shi Lei, an official with the zone. Some firms bought policies in countries along their routes but faced language barriers, limited coverage, and lengthy claims procedures.

The need for better coverage became clear when a truck carrying flowers suffered damage abroad, resulting in the loss of the entire shipment, said Zhu Jinshan, GM of Horgos Siluzhengtu International Freight Forwarding. Although the company had insurance, overseas inspections and claims took a long time, he noted, adding that in some cases, compensation can take three to six months.

For firms operating across Central Asia, insurance often involves separate policies for drivers, vehicles, and cargo. Accidents abroad can also encounter issues such as language barriers, unfamiliar local procedures, and lengthy claims processes.

Horgos, a key Chinese gateway to Central Asia, recorded 94,500 inbound and outbound truck crossings in the first four months of the year, according to the local international road transport authority.

“For a single truck going abroad, companies have to deal with several insurance providers to cover people, vehicles, and cargo,” said Chen Qiang, GM of Horgos International Freight Forwarding. He hopes Chinese insurers can consolidate these services under one insurer.

Differences in insurance rules and accident-handling procedures across countries remain a challenge, Dong said. The geographical scope of coverage was also a major issue during discussions, Shi noted.

An unresolved question is how to maintain coverage when freight companies frequently change drivers. Operators require flexibility, but insurers need to assess risks when policies are not tied to individuals. Work on relevant rules is still underway, Dong said.

“For now, PICC and its overseas partners are helping to link accident handling and claims,” Dong explained. “Talks between the authorities must continue, including on mutual recognition of insurance rules and common claims procedures.”

The insurance service’s launch event drew 25 local logistics companies, five of which signed agreements with PICC Property and Casualty's branch in Ili, according to Xinjiang Daily.

The author is Dong Jiaqi, student member of the Backpack Reporting and Research Kazakhstan 2026 team from Shanghai International Studies University.

Editor: Futura Costaglione