China’s Shanghai Securities News has reported that the Shanghai Insurance Exchange, which has been planned since 2011, could finally get approval from the China Insurance Regulatory Commission this year.

If the approval pushes through, the insurance exchange will further boost Shanghai’s aim of becoming an international financial center because the exchange will encourage insurance pricing transparency and centralised transactions.

The plan for the Shanghai Insurance Exchange was first announced in 2011. The exchange will offer risk securitisation products, catastrophe bonds and insurance derivates.

In other insurance news, Japan’s second largest life insurer, Nippon Life Insurance Co, is reportedly negotiating with the National Australia Bank (Bank) for its planned acquisition of the bank’s insurance unit.

Reports said Nippon Life is offering more than USD2.5bn for the life insurance business, which is part of the NAB’s broader wealth management unit, MLC.

In China, insurers are rushing to Yangtze to deal with insurance claims following the capsizing of a ship on Monday.

Chinese authorities have urged insurers to become more considerate and compassionate in dealing with insurance claims related to the recent tragedy. – BusinessNewsAsia.com

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