Recently, the State Administration for Financial Supervision and Administration of China issued an approval for the opening of Manfu Reinsurance Company Beijing Branch, approving the institution's operating capital of RMB 500 million. The State Administration for Financial Supervision and Administration stated that after receiving this approval document, the institution should handle the pre opening procedures in accordance with relevant regulations and start operations within 6 months from the date of obtaining the business license. This means that there will be 15 reinsurance institutions in China. Among them, the number of foreign-funded reinsurance companies increased to 9. Industry insiders interviewed by Securities Daily stated that the degree of openness of China's reinsurance market is constantly increasing, with enormous potential. The addition of foreign reinsurance companies will further enrich the supply of China's reinsurance market. Manfu Reinsurance Company, a foreign-funded reinsurance company, was established in 1986 and is headquartered in Madrid, Spain. Its main business is life and non life reinsurance, and it is a global professional reinsurance company. In 2022, the former China Banking and Insurance Regulatory Commission approved the establishment of a Beijing branch of Manfu Reinsurance Company, further enhancing the internationalization level of the Chinese reinsurance market. After two years of preparation, the Beijing branch of Manfu Reinsurance Company has finally been approved for opening. In recent years, the Chinese reinsurance market has maintained a good development momentum. Li Wenzhong, former deputy director of the Insurance Department and deputy director of the Rural Insurance Research Institute at Capital University of Economics and Trade, told Securities Daily that currently, China is the world's second-largest economy and insurance market, and the premium scale continues to grow rapidly, providing huge market space for foreign reinsurance companies. Moreover, the accelerated pace of China's insurance industry's opening-up to the outside world has provided a favorable policy environment for foreign reinsurance companies to expand their presence in the Chinese market. In addition, reinsurance business has natural international market attributes, and foreign reinsurance companies can better diversify risks and achieve global operations by expanding into the Chinese market. PwC China Financial Industry Management Consulting Partner Zhou Jin told Securities Daily that reinsurance has a high technical threshold and strong professionalism. International reinsurance companies have rich experience in product, actuarial, risk control, and other aspects. Coupled with their global business expansion and risk diversification needs, the Chinese market is generally valued. In Li Wenzhong's view, increasing the presence of foreign reinsurance companies in the Chinese market is beneficial for optimizing market structure, increasing market vitality, and promoting high-quality development of the Chinese reinsurance market. At the same time, foreign reinsurance companies have rich experience and technological advantages in risk management, product innovation, customer service, and other aspects, which can bring advanced management concepts and technical means to the Chinese reinsurance market, improve the overall professional level of the industry, and enable domestic insurance companies to enjoy better reinsurance services. In addition, foreign reinsurance companies investing in the Chinese market will promote exchanges and cooperation between Chinese and foreign insurance institutions in business, technology, talent, and other aspects, promoting the integration and integration of the Chinese reinsurance market with the international market. Domestic reinsurance companies need to increase capital investment. Currently, 9 out of 15 reinsurance companies are foreign reinsurance companies, including Munich Reinsurance Company Beijing Branch, German General Reinsurance Company Shanghai Branch, RGA American Reinsurance Company Shanghai Branch, Dahan Reinsurance Company Shanghai Branch, French Reinsurance Company Beijing Branch, Hanover Reinsurance Company Shanghai Branch, Swiss Reinsurance Company Beijing Branch, Xinli Reinsurance (China) Co., Ltd., and Manfu Reinsurance Company Beijing Branch; The six domestic institutions are China Agricultural Reinsurance Co., Ltd., Qianhai Reinsurance Co., Ltd., PICC Reinsurance Co., Ltd., Taiping Reinsurance (China) Co., Ltd., China Property Reinsurance Co., Ltd., and China Life Reinsurance Co., Ltd. With the rapid growth of China's economy and the continuous development of the insurance industry, the professional entities in the Chinese reinsurance market are gradually enriching, and the premium scale and market share are steadily expanding. However, it should also be noted that there is still a certain gap in China's reinsurance market compared to the requirements of building a strong financial country and the level of international developed reinsurance markets. In Li Wenzhong's view, domestic reinsurance institutions mainly have three shortcomings: firstly, their capital strength is relatively weak, which restricts their competitiveness with internationally renowned institutions; Secondly, there is still a certain gap in professional technical capabilities such as risk management among domestic reinsurance institutions, which also affects their market competitiveness; Thirdly, there is currently a lack of specialized laws and regulations for reinsurance, with only the "Reinsurance Business Management Regulations" issued by regulatory authorities, which is difficult to meet the needs of regulating the reinsurance market and promoting high-quality development of the reinsurance market. The demand for risk diversification in reinsurance naturally requires global business layout, participation in the construction of risk portfolios in international markets, and leveraging capital and tax policies around the world to enhance its competitiveness. However, China's reinsurance companies currently have a relatively low level of internationalization. When competing with international reinsurance companies, there is an urgent need to improve their internationalization level and further enhance their professional capabilities and risk control level Zhou Jin said. Li Wenzhong suggests that domestic reinsurance companies can use insurance technology to strengthen their risk management capabilities and better meet the service needs of direct insurance companies. At the same time, increase capital investment, enhance capital strength, and enhance one's underwriting and risk resistance capabilities. In addition, strengthening international cooperation and exchange, learning advanced international insurance professional technology, utilizing the international market for risk diversification, and improving one's underwriting and profitability. (Lai Xin She)