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In the field of reinsurance China PDF

In the field of reinsurance, there is also an active process of development and reform. The changes in China's reinsurance market that occurred in 2002 are also the result of China's accession to the WTO. Until recently, the only reinsurance company in China - "Chinese reinsurance company" - at the beginning of last year announced the beginning of the development of commercial reinsurance, which was the strategic goal of reforming the company. In accordance with the promises of the PRC, upon accession to the WTO, China will gradually abolish compulsory reinsurance by law, which currently occupies a very significant share in all the activities of the "Chinese reinsurance company". Introduced at the end of last October, amendments to the "law on insurance of the PRC" have already excluded the rules relating to compulsory reinsurance. Later, the Chinese insurance supervision issued a notice that starting from January 1, 2001, the share of compulsory reinsurance will gradually decrease and eventually such reinsurance will be completely abolished. Last year, two world leaders in the reinsurance market – the company "Munich Re", "Swiss Re" - received permission to establish their functional units in China. This suggests that the monopoly of the "Chinese reinsurance company" has ceased to exist, and the activities of companies in the reinsurance market will already be based on the principles of international competition, and not on the "rules of compulsory reinsurance".

The Institute of reinsurance is extremely important from the point of view of stability and safety of all insurance system. "China reinsurance company" from the moment of formation until last year existed thanks to the government of the country, which established the criteria for mandatory reinsurance. In this regard, the level of commercialization of the company was extremely low, the possibilities of reinsurance were limited. Changes in 2002 in the reinsurance market in China became a key link in the creation of a Mature reinsurance market in which development is based on equal competition with foreign companies [1].

The activities of reinsurance companies are also regulated by the people's Bank of China and are limited to the following areas:

- acceptance of reinsurance from domestic insurance companies engaged in property and personal insurance (after approval by the People's Bank of China);

- retrocession, - international reinsurance (after approval by the People's Bank of China).

 

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