SIRC 2023: Shanghai launches rival regional hub

In a move that might be regarded as a signal challenge to Singapore in the very same week that the Singapore International Reinsurance Conference is on, the Shanghai Insurance Exchange (SIE) officially launched its much anticipated international reinsurance business trading platform.

SIE also unveiled its first batch of market rules, marking the latest progress in developing the city as a reinsurance hub.

The platform can provide digital trading services, including business inquiry and quotation, contract deposit, account clearing, and cross-border settlement, while ensuring that the information of parties to a transaction is secure, encrypted and tamper-proof, the SIE claimed. 

It added that the platform provides traders with an intelligent online trading tools and gives regulators a more effective tool for monitoring the entire process.

The new trading rules for the platform mainly focus on cross-border business. The SIE said that they aim to create a window for opening the Chinese reinsurance market to outside investors, providing them with a platform that is lower in trading risks, higher in information transparency, and converging all the necessary elements needed in making a successful trade.

SIE chairman Ren Chunsheng said the global reinsurance board will be divided into three sectors: a domestic market sector, a cross-border market sector that supplies overseas reinsurance products, and another cross-border market sector that offers domestic reinsurance products. Foreign organisations are welcome to participate in the latter two as sellers or buyers, Ren added.