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.
