Reinsurance "International Board" officially launched in Shanghai | Finance | International
At the 14th Lujiazui Forum held today, the State Administration for Financial Regulation and Shanghai jointly released the Implementation Rules on Accelerating the Construction of Shanghai International Reinsurance Center, officially launching the "International Board" of Shanghai Reinsurance.
The reinsurance market is a relatively special market that mainly allocates risks to insurance companies. The reinsurance market is an important component of the global insurance market and plays a crucial role in the stability and development of the insurance market. The international reinsurance board in China can attract more global insurance companies to invest and operate in China, which will undoubtedly further promote the development of the Chinese insurance market, enhance the position of the Chinese insurance market, and help promote the construction of the Shanghai International Reinsurance Center.
In October 2021, the former China Banking and Insurance Regulatory Commission and the Shanghai Municipal Government jointly issued the Guiding Opinions on Promoting the Construction of Shanghai International Reinsurance Center. Zhang Zhongning, Deputy Director of the General Office of the State Administration for Financial Regulation, previously stated at a press conference of the Shanghai Municipal Government that over the past year, the central and local governments have actively collaborated to serve the high-level opening-up and high-quality "dual circulation" of reinsurance, and have made every effort to promote the construction of the Shanghai International Reinsurance Center from multiple aspects such as strategic architecture, rule system, and policy support.
One is to seize the opportunity of the window period for global underwriting capacity's "re layout", and establish a strategic framework for the construction of the Shanghai International Reinsurance Center with the Reinsurance International Board as the core. The construction of an "International Reinsurance Functional Zone" in the Lingang New Area of the Shanghai Pilot Free Trade Zone will provide centralized registration, trading, settlement, information disclosure, credit management, contract certification and other services for international reinsurance entry business, creating a transparent, convenient, and efficient international reinsurance entry business trading market.
The second is to establish a reinsurance international board rule system that is in line with international standards, guided by high-level institutional openness. Complete the design of institutional rules such as the registration and management regulations for international reinsurance division business, trading rules for international reinsurance business platforms, convenient clearing and settlement methods for cross-border transactions on the exchange, and operational guidelines for credit risk characteristic coefficients of solvency reinsurance, to strengthen the institutional foundation of the reinsurance center.
The third is to closely integrate the construction of the international reinsurance center with the financial opening of the Lingang New Area, and build a reinsurance functional area that is suitable for the domestic and international business environment. Domestic and foreign insurance entities can enjoy a series of supporting policies such as exclusive financial and tax incentives, cross-border convenience of funds, and differentiated supervision by setting up reinsurance operation centers within functional areas or trading seats on international reinsurance business platforms to carry out reinsurance business.
