China Banking and Insurance Regulatory Commission rule changes have made waves among reinsurers in Hong Kong, benefiting companies including Peak Re, Scor, Taiping Re and Transatlantic Re, and putting pressure on others, such as Munich Re, who moved out of the city. The regulations reduce capital requirements for mainland Chinese firms when they do business with Hong Kong reinsurers, as opposed to international companies. In a statement released last week, Deutsche Bank said it was “deeply concerned” about the new rules that would force its German subsidiary into an offshore shell company if it did not comply by March 31.
China Banking and Insurance Regulatory Commission rule changes have made waves among reinsurers in Hong Kong, benefiting companies including Peak Re, Scor, Taiping Re and Transatlantic Re, and putting pressure on others, such as Munich Re, who moved out of the city. The regulations reduce capital requirements for mainland Chinese firms when they do business with Hong Kong reinsurers, as opposed to international companies. There was a 9.1% rise in the total gross premium of reinsurers in Hong Kong during the first nine months of 2018 to HKD10bn ($1.27bn), according to Insurance Authority data.