China's first shipping insurance association was founded in Shanghai on Thursday.

The association is comprised of 31 member companies, including major industry players PICC Property and Casualty Co, China Pacific Property Insurance, and leading foreign shipping insurance companies such as Mitsui Sumitomo Insurance and Allianz AG.

The association's founding came after the China Insurance Regulatory Commission issued eight measures to boost development of the insurance sector in the China (Shanghai) Free Trade Zone.

Xu Feng, secretary-general of the association, said its establishment will bring stability and help avoid excessive price competition, and strengthen communication with the government.