Shanghai has officially launched an international board for reinsurance trading with a vision to build the city into a global reinsurance centre. Implementation rules have also been rolled out by the country’s financial regulator and the Shanghai government.
The new international board for reinsurance is a part of the Shanghai Futures Exchange. The exchange is open to both domestic and foreign institutions, and the board will cater to China’s rapidly growing insurance market needs.
The implementation rules are designed to accelerate the development of the reinsurance market in Shanghai. The aim is to attract more foreign players and capital into the market and further Shanghai into a leading global financial centre, seeing the reinsurance market as a key area for future growth.
Li Yunze, the Head of China’s National Financial Regulatory Administration, and Gong Zheng, the Mayor of Shanghai, announced the launch of the Reinsurance International Board during the 14th Lujiazui Forum that commenced today.
The local arm of the China Banking and Insurance Regulatory Commission and the financial regulatory administration released a document of 22 measures that will be taken to promote the city to become a global reinsurance hub. Some of those moves include improving infrastructure and institutional systems, strengthening product supply and innovation ability, as well as attracting talent.
The new digital trading system will integrate transactions, clearing, and settlement with Lingang New Area being the focal area. The country will guide companies to establish their reinsurance businesses in the free trade zone close to Shanghai’s Pudong International Airport. Lingang will facilitate reinsurance businesses’ cross-border settlement and expenditures on the mainland to reduce their costs and processing time.
