State-owned re/insurer the People’s Insurance Company of China (PICC) is currently seeking permission from Argentine insurance watchdog SSN to operate as an admitted reinsurer and is on track to launch in September, according to reports from BNamericas.
Once launched, PICC will become the first Chinese re/insurer to operate in Argentina.
The firm is set to work closely with local brokerage Broker del Plata.
In a move designed to bolster the country’s re/insurance market, SSN has supposedly lowered entry barriers to foreign firms.
Broker del Plata has reportedly worked with PICC previously as an insurance broker and secured a multi-year contract with the firm as a result of this.
Jorge Strika, president of Broker del Plata, told BNamericas that the company will act as PICC’s local reinsurance representative on an exclusive basis.
It has been reported that PICC’s initial focus will be on providing reinsurance coverage to insurers providing the likes of surety and operational all-risk policies for public works projects with Chinese investment.
BNamericas says Chinese investors are heavily involved in the Argentine energy sector and tend to operate in consortium with local companies.
“It’s a very significant development because China comes with different costs,” Strika told BNamericas.
“The cost of reinsurance dictates the cost of insurance. Retail companies don’t retain the risk, they transfer it.”
“Basically what they will do is start by providing reinsurance for Chinese investments in Argentina,” Strika added.
“There is a lot of Chinese investment, involving a large amount of US dollars, here in the country.”
