The Shanghai Insurance Exchange (SIE) has launched its international reinsurance business trading platform, as well as the first batch of market rules, marking the latest progress in developing the city as a reinsurance hub.
According to the announcement, the platform is the key digital infrastructure of the Shanghai International Reinsurance Trading Center – an institute under the SIE, responsible for running the reinsurance deal transactions.
The SIE made the announcement at a recent Shanghai International Reinsurance Conference.
Moreover, the platform possesses the capabilities to be able to provide digital trading services, which includes business inquiry and quotation, contract deposit, account clearing, and cross-border settlement, while ensuring the information security, encryption, and tamper resistance of transactions.
The platform also provides traders with an intelligent online trading place, and also supplies market regulators with an effective tool for monitoring the entire process, with better penetration and refinement.
In addition, the newly added four trading rules mainly focus on the cross-border reinsurance business.
The rules are aimed to create a window for opening the Chinese reinsurance market to outside investors.
As a result, this will provide them with a platform that is lower in trading risks, higher in information transparency, and converging all the necessary elements needed towards making a successful trade.
He Chunlei, chairman of China Reinsurance Group, noted that the launch of the global reinsurance board marks the entry of China’s reinsurance industry into a new stage of two-way opening.
Ren Chunsheng, chairman of the SIE, explained that the global reinsurance board will be divided into three sectors: a domestic market sector, a board market sector that supplies overseas reinsurance products, and another cross-board market sector that provides domestic reinsurance products.
Chunsheng also noted, that foreign organizations are welcome to participate in the latter two markets as sellers or buyers.
If you recall, in June, the National Administration of Financial Regulation and Shanghai’s government announced the construction of a global reinsurance trading market in the city.
Moving forward, the Lingang New Area in the Shanghai Free Trade Zone then later established a special zone for international reinsurance business, with the first batch of eight insurers settling in September and a second batch of seven set to enter in the near future.
