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China moves to accelerate development of Shanghai reinsurance hub

The plan includes unified registration of reinsurance contracts and claims data through the Shanghai reinsurance registration and trading centre.

Reported · Written up by our desk · Industry & Deals

China’s State Financial Regulatory Commission and the Shanghai municipal government have issued a joint notice aimed at speeding up development of the Shanghai International Reinsurance Center, which began operating in October 2024. The initiative builds on Shanghai’s international board for reinsurance trading and the Shanghai Global Reinsurance Platform launched in 2023, with the goal of positioning Shanghai as a global reinsurance hub for China’s growing reinsurance market.

According to the notice, Shanghai and the National Financial Regulatory Administration will optimize the institutional setup to support the flow and allocation of resources in the Lingang New Area within the China Pilot Free Trade Zone. It also encourages large enterprises to centrally manage risk protection in the Lingang area and promote more precise matching between risk and underwriting capacity.

The governments also call for unified registration of reinsurance contracts, claims, and related information by domestic insurance institutions at the reinsurance registration and trading centre. The effort is designed to improve data standards, implement hierarchical and classified data management, and strengthen data governance and security in line with laws and regulations.

Additional steps include supporting overseas reinsurers and reinsurance brokers to conduct referrals through the registration and trading centre, expanding the participation of overseas insurance institutions in the Chinese reinsurance market and increasing platform transactions. The notice also highlights support for reinsurance institutions to raise capital and issue capital replenishment instruments, alongside efforts to diversify channels for special risks such as catastrophic risks.

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