Shanghai’s Reinsurance Exchange Emerges as Global Hub
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A striking glass building on Dishui Lake in Shanghai’s Lingang Special Area is drawing international attention: the Shanghai International Reinsurance Exchange (SIRE). Between January and August 2025, the exchange recorded nearly 104 billion yuan ($14.6 billion) in reinsurance premium transactions, with outward reinsurance accounting for 94.6 billion yuan ($13.3 billion) and inward reinsurance 9.5 billion yuan ($1.3 billion).
Hybrid Market Design Boosts Efficiency
Reinsurance, often called the “shock absorber” of global insurance, relies heavily on negotiation. SIRE combines a physical trading floor with electronic signaling, allowing counterparties to engage efficiently while preserving essential face-to-face discussions. “Institutions light up their desks to attract partners, lowering transaction frictions,” explained Chang Ming, assistant to the exchange’s general manager.
The platform has attracted 118 institutions, including 28 foreign entities from 13 countries. Six overseas firms hold trading seats, gaining market access without full domestic approval—a mechanism that significantly reduces entry costs and fosters bilateral cooperation.
Strategic Industry Applications
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SIRE is already facilitating sector-specific solutions, such as aviation risk coverage for domestically produced COMAC aircraft in partnership with PICC and Air Union Insurance Brokers. By enabling transparent, traceable reinsurance contracts, the exchange supports Chinese companies' overseas operations while offering international players structured participation in China's growing insurance market.
Regulatory Support and Data Transparency
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The People's Bank of China has enabled cross-border capital flows via free trade accounts, and Lingang authorities issued guidance on cross-border data management. “Trading data is true, traceable, and controllable,” noted Chang, signaling a framework designed to meet global risk governance expectations while ensuring operational flexibility for international institutions.
Implications for Global Investors
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For reinsurers, banks, and consultancies, SIRE provides a low-friction gateway to China’s rapidly expanding insurance sector, promoting international cooperation and risk diversification. Its hybrid model, combining regulatory oversight with market innovation, may become a blueprint for other controlled-open financial markets, offering insights into China's evolving role in global risk management.
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