The preferential treatment that reduces the cost of capital for Chinese insurers when they buy reinsurance in Hong Kong could change once the city adopts a new RBC regime.
Tag : reinsurance
Award of the licence to the first reinsurer and Switzerland-based firm represents China's bid to diversify its international investor base, say analysts. It is seen as a sign of more asset owners joining the scheme.
One fund manager is counting on the new leadership in Beijing to allow capital markets to play a role in diversifying insurance risk.