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21 January 2019 Insurance

Germany-China agree to bolster ties on re/insurance links

Germany has signed an agreement with China designed to boost the level of understanding and cooperation between the two countries with regards to re/insurance though the agreements also covers many other aspects of banking and finance.

The deal will allow German insurers to form wholly-owned insurance holding firms in China; equally, Chinese re/insurers will be able to conduct business in Germany.

The agreements followed talks between German Finance Minister Olaf Scholz and Chinese Vice Premier Liu He at the 2nd China-Germany High Level Financial Dialogue in Beijing.

Both sides said that this dialogue mechanism is a key platform for bilateral communication and policy coordination on strategic, overarching, and long-term issues in the fiscal and financial fields.

“Under the dialogue framework, both sides are committed to expanding two-way opening-up and deepening pragmatic cooperation to bring the China-Germany bilateral financial relations to a new high. Both sides reaffirm that they will strengthen macroeconomic policy coordination and pragmatic cooperation in the fiscal and financial fields and expand strategic cooperation,” the countries said in a statement.

The lengthy joint statement made several specific references to insurance and reinsurance. One part noted that both sides welcomed the deepening cooperation between official German export credit and investment insurance institutions and the China Export Credit Insurance Corporation. It also noted that they would explore how joint insurance or reinsurance support for projects involving exporters from both countries can be provided on the basis of the 2016 Euler Hermes–China Export Credit Insurance Corporation re-insurance agreement to support cooperation between companies in third-party markets.

It also noted that Germany welcomes China continuing to effectively further open up its financial sector while the Chinese side said it welcomes qualified German financial institutions into the Chinese market, and the German side welcomes qualified Chinese financial institutions into the German market.

The note also stated: “The two sides support the Asset Management Association of China (AMAC) and its German counterparts 9 welcomes qualified German insurers to help drive innovation for the benefit of Chinese customers and to extend their business scope in digital insurance areas in China in line with relevant rules and regulations.”

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