The Shanghai Insurance Exchange, unveiled on October 26, has completed its first inward reinsurance transaction.
The agreement, signed during the China International Import Expo, will see AXA Hong Kong cede cross-border ‘unilateral recognition’ motor business to AXA Tianping P&C.
The ‘unilateral recognition’ scheme allows insurers to provide coverage across the Guangdong-Hong Kong-Macao Greater Bay Area and was launched in July this year
Both insurers are registered with the Shanghai reinsurance market’s international board, a key part of China’s ambitions to become a global (re)insurance player, which is divided into three distinct sectors: a domestic, domestic reinsurance, and overseas reinsurance markets.
Wang Junshou, head of the China Banking and Insurance Regulatory Commission’s Shanghai office, commented on the significance of the deal and said that the International Board of Reinsurance is an important platform and window for China to enhance pricing power and participate in the global reinsurance.
He added that it was important that “Shanghai’s voice be heard in the international reinsurance market.”
AXA Taiping meanwhile said that they will use the Shanghai Reinsurance Operation Center as a platform to coordinate and integrate more reinsurance resources in order to contribute to the development of risk management, underwriting capacity, and service level of China’s (re)insurance industry.
Eight insurers have so far taken residence within the Centre, which is located within Shanghai’s Free Trade Zone’s Lingang New Area, with seven more understood to be joining shortly.
