06.04.2016, 01:36
SOGAZ Registration in China as Foreign Reinsurer
OREANDA-NEWS. SOGAZ Insurance became the only Russian Insurance Company registered in the People's Republic of China.
Effective from January 1, 2016, the China Insurance Regulatory Commission (CIRC) implemented the Reinsurance Registration System (RRS) for tracking, approval and obligatory registration of foreign reinsurers intending to operate on the Chinese market. In particular, it tightened key financial stability and international rating requirements. SOGAZ became the only Russian insurer permitted to carry out trans-border operations of obligatory and facultative reinsurance with contracting parties in the PRC.
"The current B++ rating of SOGAZ from A.M. Best allows us to participate in reinsurance of risks in China, though our shares are limited," said Dmitry Talaev, CEO and Member of the Board of SOGAZ. "We plan to develop cooperation with Chinese companies both in incoming and outgoing reinsurance. Our near-term plan is to extend cooperation with such Chinese companies as Anbang Insurance Group, Ping An Property&Casualty Insurance Company and Taiping Reinsurance, China Re, PICC. Of particular interest to us are energy risks, property, construction and erection risks, and marine and aviation risks.
Dmitry Talaev also noted that reinsurers had to undergo the re-registration procedure once in three years. Besides, foreign companies have to regularly demonstrate their compliance with qualification requirements of CIRC.
"The Chinese insurance market is surely one of the most promising and difficult to work on for foreign companies. In this respect, registration with the RRS is critical for us", noted Dmitry Talaev.
According to CIRC, China was the third largest insurance market in the world in 2015. Over the period from 2010 to 2015, its premiums increased from CNY 1.3 trillion ($198 billion) to CNY 2.4 trillion (approximately $365 billion). In addition, the Chinese market is notable for high concentration: top 3 insurers account for 53.7% of the life insurance market and almost 65% of the Non-Life Insurance market. The total share of foreign companies in these sectors is only 5.6% and 1.3%, respectively.
Effective from January 1, 2016, the China Insurance Regulatory Commission (CIRC) implemented the Reinsurance Registration System (RRS) for tracking, approval and obligatory registration of foreign reinsurers intending to operate on the Chinese market. In particular, it tightened key financial stability and international rating requirements. SOGAZ became the only Russian insurer permitted to carry out trans-border operations of obligatory and facultative reinsurance with contracting parties in the PRC.
"The current B++ rating of SOGAZ from A.M. Best allows us to participate in reinsurance of risks in China, though our shares are limited," said Dmitry Talaev, CEO and Member of the Board of SOGAZ. "We plan to develop cooperation with Chinese companies both in incoming and outgoing reinsurance. Our near-term plan is to extend cooperation with such Chinese companies as Anbang Insurance Group, Ping An Property&Casualty Insurance Company and Taiping Reinsurance, China Re, PICC. Of particular interest to us are energy risks, property, construction and erection risks, and marine and aviation risks.
Dmitry Talaev also noted that reinsurers had to undergo the re-registration procedure once in three years. Besides, foreign companies have to regularly demonstrate their compliance with qualification requirements of CIRC.
"The Chinese insurance market is surely one of the most promising and difficult to work on for foreign companies. In this respect, registration with the RRS is critical for us", noted Dmitry Talaev.
According to CIRC, China was the third largest insurance market in the world in 2015. Over the period from 2010 to 2015, its premiums increased from CNY 1.3 trillion ($198 billion) to CNY 2.4 trillion (approximately $365 billion). In addition, the Chinese market is notable for high concentration: top 3 insurers account for 53.7% of the life insurance market and almost 65% of the Non-Life Insurance market. The total share of foreign companies in these sectors is only 5.6% and 1.3%, respectively.
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