BEIJING, May 13 (Xinhua) -- China's reinsurance market is increasingly attractive to foreign companies with its emerging development potential.
China Banking and Insurance Regulatory Commission (CBIRC) recently approved the proposal of the Shanghai branch of Hannover Re from Germany to increase its register capital from 2.545 billion yuan to 4.105 billion yuan.
Hannover Re's business scale has been growing rapidly in China. Although the world's economy has been struck by the COVID-19 pandemic, it maintains optimistic outlook about China's market and has been increasing input to the market.
Less than a year ago, Hannover Re's Shanghai branch added its register capital from 1.545 billion yuan to 2.545 billion yuan last September.
In recent years, China's reinsurance market has been developing in an open and competitive environment and the industry has maintained fast growth in scale and innovation capability.
Foreign reinsurance institutions generally believe China's reinsurance market has great potential, which lead them to open branches and beef up efforts in developing the market.
CBIRC approved the establishment of the Shanghai branch of Korean Reinsurance in December 2019, making the number of foreign reinsurance companies to seven, exceeding that of domestic ones.
CBIRC also granted capital increase plans of General Reinsurance AG's Shanghai branch in November 2019 and Swiss Re Group in April.
The banking and insurance regulator has recently said China will continue to open up the banking and insurance sector and support operations and healthy development of foreign reinsurance companies in China to promote market-oriented development and internationalization of domestic insurance industry.
(Edited by Yang Qi with Xinhua Silk Road, kateqiyang@xinhua.org)
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