Core Insights - The 2025 Shanghai International Reinsurance Conference concluded, showcasing multiple industry technological innovation platforms and facilitating discussions on the development of the reinsurance industry and global risk governance [1] Group 1: Reinsurance Functionality - Reinsurance acts as an "amplifier," "regulator," and "connector" in the insurance industry, promoting rational competition and effective risk management [2] - In the first nine months of 2025, the insurance industry's premium income reached 5.2 trillion yuan, a year-on-year increase of 8.5%, while claims amounted to 1.9 trillion yuan, up 7.4% [2] Group 2: Global Disaster Risk Management - In 2024, global natural disaster losses exceeded $320 billion, significantly higher than the average over the past 30 years, with reinsurance companies playing a crucial role in risk dispersion [3] - Catastrophe bonds have become an essential tool for risk dispersion, with total issuance reaching $7.1 billion in Q1 2025, marking a historical high [3] Group 3: Regulatory Developments - The Financial Regulatory Bureau issued a notice supporting domestic insurance companies in issuing "sidecar" insurance-linked securities in Hong Kong, enhancing catastrophe risk management tools [4] - The "sidecar" securities allow insurance companies to transfer risks to specially established Special Purpose Insurance Companies (SPI), which raise funds through securities issuance [4] Group 4: Research and Innovation - The reinsurance industry is driven by research and innovation, with a focus on climate risk management due to the increasing frequency of extreme weather events [5][6] - China Re launched a climate change risk insight platform, which integrates international modeling methods and local disaster characteristics to support climate risk management [6] Group 5: Market Opportunities and Internationalization - China's reinsurance market accounts for only 4% of the global market, indicating a need for enhanced pricing and market leadership capabilities [8] - The Shanghai International Reinsurance Center has attracted 26 insurance institutions and 128 trading permissions, indicating a growing reinsurance ecosystem [8][9] Group 6: Strategic Recommendations - Recommendations for enhancing Shanghai's reinsurance market include creating a favorable regulatory environment, improving market systems, and developing a talent pool for internationalization [10][11]

Core Insights - The 2025 Shanghai International Reinsurance Conference highlighted industry innovations and discussions on global risk governance and reinsurance development [1] Group 1: Reinsurance Functionality - Reinsurance acts as an "amplifier," "regulator," and "connector" in the insurance industry, facilitating risk dispersion and enhancing market stability [2] - In the first nine months of 2025, the insurance industry in China reported premium income of 5.2 trillion yuan, a year-on-year increase of 8.5%, and claims of 1.9 trillion yuan, up 7.4% [2] Group 2: Catastrophe Bonds and Risk Management - The global natural disaster losses in 2024 exceeded $320 billion, significantly higher than the average over the past 30 years, with reinsurance companies playing a crucial role in risk dispersion [3] - Catastrophe bonds have seen substantial growth, with a total issuance of $7.1 billion in Q1 2025, marking a historical high [3] Group 3: Regulatory Developments - The Financial Regulatory Authority issued a notice supporting domestic insurance companies in issuing "sidecar" insurance-linked securities in Hong Kong, enhancing catastrophe risk management tools [4] Group 4: Climate Risk Management - The reinsurance industry is increasingly focused on climate risk management, with the establishment of the Climate Vision platform by China Re, aimed at providing insights into climate-related financial risks [5][6] - The platform integrates international modeling methods and local disaster characteristics to support regulatory standards and financial stability [6] Group 5: Internationalization and Market Development - China's reinsurance market accounts for only 4% of the global share, indicating a need for improved risk pricing and market leadership [8] - The Shanghai International Reinsurance Center has attracted 26 insurance institutions and 128 trading permissions, indicating a growing ecosystem [8] Group 6: Strategic Recommendations - Recommendations for enhancing Shanghai's reinsurance market include creating a favorable regulatory environment, improving market infrastructure, and developing a talent pool for international operations [10][11]

Core Insights - The annual international conference on reinsurance, held in Shanghai, focused on the future development of the industry, attracting over 400 institutions from 28 countries and regions, emphasizing the growing role of reinsurance in supporting the real economy and enhancing global resilience in the insurance sector [1][2] Reinsurance Center Development - The construction of the Shanghai International Reinsurance Center is accelerating, with 26 institutions already established and 128 institutions having trading permissions, leading to a cumulative trading scale of 4.5 billion yuan and a registration scale of nearly 110 billion yuan by the end of Q3 [2][3] Risk Management and Innovation - The demand for comprehensive risk protection is rising due to rapid economic development, with emerging risks in strategic sectors like technology and green energy needing to be addressed by the reinsurance industry [3][7] - Technological innovation is a key focus, with advancements in risk management, actuarial pricing, and data modeling being essential for the industry's competitive edge [7][8] Globalization and Market Dynamics - The trend towards globalization and internationalization in the insurance industry is irreversible, with a growing consensus on the need to diversify reinsurance capacity across more countries, particularly in emerging markets like China [4][5] - The Shanghai International Reinsurance Center aims to enhance its market share in the national reinsurance market, focusing on creating a robust ecosystem that includes reinsurance brokers and legal institutions [5][6] Technological Advancements - The conference highlighted significant technological achievements, including the launch of a risk management center and a climate change risk insight platform, aimed at improving the assessment and management of potential catastrophic risks [8]