COSCO Shipping Captive Insurance Co signs cooperation deals with the China COSCO Shipping Corp as well as its subsidiaries and partners to provide them with insurance services. [Photo/Pudong Times]

Some insiders have said the development is an innovative maneuver in China's insurance industry and believe it will also boost the country's insurance industry.

Currently, captive insurance businesses are popular abroad with nearly 70 percent of Fortune 500 companies having established captive insurance firms. In China, however, the industry is still in its infancy and there are currently only two captive insurance firms on the Chinese mainland with an additional three firms based in Hong Kong.