Shanghai officially launched the long-awaited insurance exchange yesterday at the Lujiazui Forum, as part of efforts to build the city into an international insurance center.

With an initial registered capital of 2.24 billion yuan (US$341 million) contributed by 91 companies, the exchange will facilitate trading of insurance products and insurance derivatives. It will focus on international reinsurance, shipping insurance, bidding for mega insurance deals and special risk insurance.

First mooted in 2010, the insurance exchange, the first of its kind in China, adds to current exchanges that trade stocks, bonds, commodities and currencies in Shanghai.

“The new bourse will further diversify the functions of Shanghai financial markets while gathering international insurers and reinsurers in the city and boost Shanghai’s voice in the global insurance industry,” Shanghai Executive Vice Mayor Tu Guangshao said at the launch ceremony.

The exchange will help local businesses align with global insurance practices and channel risks outside the insurance market.

“It’s an important step to promote the upgrading of China’s insurance industry,” said Chen Wenhui, vice chairman of the China Insurance Regulatory Commission.

“The new exchange should play an active role in increasing supply of insurance products to meet increasingly diversified market demand and boost the coverage of insurance services.”

The exchange is set to collaborate with China’s 300 billion yuan national insurance investment fund to develop infrastructure in the country, and meet Shanghai’s goal of becoming an international insurance center by 2020.

Source: Shanghai FTZ Government.cn