"The association will attract more domestic insurance companies and international players to expand their footprint in Shanghai," said Gan Aiping, a professor at Shanghai Maritime University

"The association will be able to serve as a platform for members to share business and academic views, protect their interests and make their voices heard," Gan said.

Zhou Dequan, deputy director of the shipping market research department of the Shanghai International Shipping Institute, said the creation of a shipping insurance association is in line with the spirit of the Third Plenary Session of the 18th Central Committee of the Communist Party of China, which decided to let market forces play a decisive role.

"The association will shoulder some of the government's responsibilities, such as coordination among companies and industrial internal management," said Zhou.

Advanced shipping services, which include shipping insurance, require a free market environment. The China (Shanghai) Pilot Free Trade Zone will offer a place to try out these concepts, said Zhou.

Pei said that a dozen shipping insurance centers have been set up in Shanghai recently, and they're considering opening facilities in the FTZ.

"That will be a great driver for the development of shipping insurance, and it will be good for Shanghai in terms of building an international shipping center," said Pei.

Although Shanghai accounts for the lion's share of domestic shipping insurance, it handles scant international business.

Wei Tian in Shanghai contributed to this story.