OREANDA-NEWS. The Central Bank of the Russian Federation and the China Insurance Regulatory Commission of the People's Republic of China (CIRC) signed a Memorandum of Understanding Regarding Insurance Regulatory Cooperation

The document provides for the main principles in line with which the Bank of Russia and CIRC are to render mutual assistance and exchange information to develop national insurance markets. The Memorandum also stipulates the procedure for supervisory authorities to cooperate.

A special emphasis in the course of the meetings was made to reinsurance development between the two countries' insurance companies and insurance pools.

According to Sergey Shvetsov, First Deputy Governor of the Bank of Russia, in 2014 the volume of outgoing reinsurance stood at 142 billion rubles, of which 106 billion rubles were transferred outside of Russia, with a mere 1.2 billion rubles - to China, which makes up less than 1% of the whole market. Under the reinsurance terms, only 219 million rubles were received from China.

In order to develop cooperation between Russian and Chinese insurance companies, the case in question may be an increase in capacities of the Chinese nuclear pool for risks of the Russian nuclear pool and vice versa.

The Chairman of the China Insurance Regulatory Commission of the People's Republic of China Xiang Junbo communicated that China supports cooperation between the nuclear pools. 'We are also interested in reinsurance in aviation, cosmonautics, hydrocarbons, telecommunications, communications, as well as in infrastructure engineering objects. We are set to develop large-scale cooperation and welcome establishment of the Russian companies' representative offices in China', Xiang Junbo was quoted as saying. There are currently a few Russian major insurers in China.

At present, a successful cooperation between Russian and Chinese companies can be witnessed in tourist insurance.