Two foreign reinsurers will soon open offices in China

The Chinese Insurance Regulatory Commission (CIRC) has issued a favorable response to the application made by two foreign reinsurers keen on opening representation offices, one from Bermuda and the other from South Korea.

Partner Re and Korean Reinsurance obtained preliminary license, having fulfilled CIRC’s initial requirements. These licenses will be validated after receiving approval from CIRC’s president.

New prudential regulations were set out in January 2016, authorizing local insurers to detain a minimum level of equity shares if their reinsurers are established in China. This amendment is likely to increase the number of the subsidiary companies detained by foreign reinsurers settled in the country.

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