Shanghai Municipal Financial Office, the Shanghai bureau of the National Administration of Financial Regulation, the PBOC Shanghai headquarters and the SAFE Shanghai branch issued Implementation Measures to launch a pilot easing overseas investment of cross-border reinsurance assumed income. Four insurers—PICC P&C, China Pacific P&C, Ping An P&C and China Re P&C—three banks—ICBC, Bank of China and China Construction Bank—and the Reinsurance Trading Centre launched the first-phase pilot. Under th

Shanghai Municipal Financial Office, the Shanghai bureau of the National Administration of Financial Regulation, the PBOC Shanghai headquarters and the SAFE Shanghai branch issued Implementation Measures to launch a pilot easing overseas investment of cross-border reinsurance assumed income. Four insurers—PICC P&C, China Pacific P&C, Ping An P&C and China Re P&C—three banks—ICBC, Bank of China and China Construction Bank—and the Reinsurance Trading Centre launched the first-phase pilot. Under the pilot, domestic insurance institutions and their branches may, under the insurance funds’ overseas investment rules, use net income from cross-border reinsurance assumed business generated via on-exchange trades at the Reinsurance Trading Centre for overseas investment. The pilot also opens a channel for global asset allocation by domestic insurers and is intended to complete Shanghai’s shift from global risk coverage to global asset allocation, which regulators say will stimulate insurers to scale up cross-border reinsurance assumed business.