China proposes collateral for offshore reinsurance deals

The China Insurance Regulatory Commission has proposed that collateral be furnished to support offshore contracts, given an increase in credit risk in offshore reinsurance deals, Asia Insurance Review reported. The move will promote safe offshore reinsurance dealings, and protect the interests of Chinese insurers. The draft regulations would require that collateral could be in the form of cash deposits, letters of credit or other instruments approved by CIRC.

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