China's National Financial Regulatory Administration and the Shanghai municipal government have jointly announced measures to develop Shanghai into a global reinsurance hub, the Macau Business reported. The authorities said the initiative targets the Lingang new area of the China (Shanghai) Pilot Free Trade Zone.
The measures aim to facilitate the efficient flow and allocation of financial resources within Lingang. Major companies will be encouraged to centralise risk protection management within the area. Domestic insurers will also be encouraged to register reinsurance contracts and claims data at the Shanghai International Reinsurance Registration and Exchange (SIRRE).
Additional provisions support reinsurance institutions in capital raising, shareholder expansion, and the issuance of capital-supplementary instruments, according to the news outlet. The authorities said cross-border cooperation within Lingang would be used to attract insurance institutions to explore new market opportunities.
The SIRRE recorded nearly ¥4.4 billion (US$617.87 million) in premiums during its first eight months of operations. The exchange had registered 118 institutions with trading rights by that point, split between 90 domestic and 28 overseas entities. Overseas members include institutions from the United Kingdom, Barbados, and the Democratic Republic of the Congo.
The exchange's outward insurance volume reached ¥94.6 billion in the same period, while inward reinsurance totalled ¥9.5 billion. Overseas institutions holding trading seats at the SIRRE can access Chinese clients more efficiently without establishing permanent operations in China.
The People's Bank of China has facilitated cross-border capital registration and reinsurance trading at the exchange through free trade accounts. The central bank is also considering a measure to allow overseas investment using inward reinsurance income.
China's insurance industry recorded primary premium income of ¥4.79 trillion (US$653.3 billion) in the first three quarters of 2024, according to Swiss Re data. The figure represented a 7.2% year-on-year increase, while China Reinsurance Group, Asia's largest reinsurer, earned ¥46 billion in property and casualty reinsurance in 2024.
SCOR chief executive Thierry Leger has said he is "convinced that the Chinese reinsurance market will become number 2 in the world in the next 10 years." Former Swiss Re chief executive Christian Mumenthaler has projected that premiums in China's insurance market "will double in 10 years."
Munich Re, Hannover Re, Swiss Re, and Everest Group have all recently committed to expanding in China and the wider Asia region. The NFRA and Shanghai municipality said the measures are part of broader efforts to build Shanghai into an international financial centre. The task is set out in China's 15th Five-Year Plan, which covers the 2026 to 2030 period.
