How can maritime insurance services be developed in the Shanghai FTZ?

This paper aims to assist the development of a global marine insurance market within the Shanghai Free Trade Zone (FTZ), by proposing practical policy discussion points for the consideration of the Chinese authorities.

Acknowledging the strategic importance of developing the marine industry in Shanghai, this paper has sought to provide a set of suggestions on how marine and other insurance services can support the FTZ’s growth. Measures conducive to the growth of the marine market will benefit the growth of the insurance market as a whole.

This paper draws on experiences in international insurance markets and other international FTZs. It is based on examples of best practice from a number of established international insurance and financial markets including London, Singapore, Hong Kong, New York and Dubai. These markets are a cross-section of the global industry, and represent markets where industry dynamics and regulatory regimes have coincided to form viable commercial platforms conducive to international growth. From a commercial perspective, a further imperative of this paper will be to highlight market practices and regulatory changes which have stifled growth, deterred international investment, or restricted innovation in insurance markets around the world.

Key discussion points

  • Ensure mutual recognition of regulatory regimes, and cedant responsibility in the regulation of outwards reinsurance of domestic insurers
  • Allow international (re)insurers to use the FTZs to access business from all Chinese provinces
  • Encourage the development of professional intermediaries in the FTZ.

 

You can also download this report in Chinese.