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. The encouraging news for the sector comes after a turbulent period with the likes of Munich Re moving away from the city as a place to conduct P&C business. 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. 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.