Swiss Re to help elevate Shanghai’s position as world financial hub

SHANGHAI: Swiss Re Group, with its strong position in insurance, reinsurance and insurance-based risk transfer, has vowed to use its expertise to support Shanghai in achieving higher goals as an international financial centre during the 14th Five-Year Plan (2021-2025).

According to Sergio P. Ermotti, chairman of the board of directors of Swiss Re, Shanghai has made solid progress in the construction of an international financial centre, evidenced by the continual rise in its global rankings.

Shanghai ranked third among 126 financial centres in the world, an increase from 24th in 2007, according to the Global Financial Centres Index, published by the Z/Yen Partners in collaboration with the China Development Institute in March.

“No one can ignore Shanghai’s economic strength. Shanghai’s GDP tops all cities in China. And the city’s economic strength puts it among the top 20 markets worldwide,” Ermotti said.

Despite its significant progress, Ermotti said the megacity still has some catching-up to do in its quest to become a centre of global business and finance.

“That includes the insurance sector,” the board chairman said in his report to the 33rd annual meeting of the International Business Leaders’ Advisory Council in Shanghai.

“Using insurance penetration as a gauge of the sector’s development, we see that although penetration in Shanghai rose to 4.8% in 2020, from 4.5% in the previous year, that is still well below the 2019 global average of 7.2%.”

According to Ermotti, Shanghai has to pay greater attention to systematic disaster risk reduction, which is a key factor for Shanghai’s long-term sustainable development, and for the prosperity of its 25 million people.

With an increasing number of businesses and a population influx into the coastal city, as well as destructive typhoons, flooding and storm surges, effective tools to cover risks caused by climate change are needed, Ermotti said.

“What we need is for Shanghai to drive a systematic approach, leveraging the expertise of reinsurers and insurers to help households and businesses manage the challenges of climate change,” he said.

“Swiss Re, as specialists in risk transfer solutions, see strengthening the resilience of Shanghai’s infrastructure, its businesses and its society as a very important area for cooperation.” — China Daily/ANN