The Chinese insurance regulator CIRC is working through 25 approval applications to set up reinsurance companies in the country. Presently, there are three local reinsurers in mainland China. They are, China Re, PICC Re and Qianhai Re. The last two were given licences by CIRC earlier in the year. Additionally, seven foreign reinsurers have a presence in China. Within the 25 applications for approval are Asia-Pacific Reinsurance, Tianyuan Re and Huayu Re.
The Chinese insurance market is expanding rapidly with the government promoting commercial insurance in the health and pension sectors as well as new areas of insurance including NatCAT insurance and environmental pollution liability insurance. In addition, China’s Risk-Orientated Solvency System (C-ROSS) requires that insurers hold more capital for certain risks and this will push higher reinsurance usage.