(Yicai) Aug. 16 -- China has given the green light to the opening of seven centers for reinsurance in Shanghai ahead of others as the eastern city accelerates its moves to become a national hub of insurance for insurers.

The seven new property insurance providers will all be located in the Lingang New Area. The group includes China Ping An Property Insurance, China United Property Insurance, Mitsui Sumitomo Insurance China, Sunshine Property and Casualty Insurance, and Guoren Property and Casualty Insurance, and they are authorized to do business nationwide, Yicai learned.

The National Administration of Financial Regulation has been processing applications of domestic and overseas reinsurance centers quicker lately as in June, Shanghai revealed new rules to speed up the process of becoming an international reinsurance center and initiated an international board for reinsurance trading. The centers are linked with an international transaction system formed by the Shanghai Insurance Exchange, China's first insurance exchange platform.

Over 30 overseas reinsurance institutions have applied for a business license, an insider in the special economic zone in Shanghai said to media outlets last month. Lingang said on WeChat that dozens of institutions have applied for such a permit besides the seven successful applicants. The widening industry is further accommodated with better infrastructure as on Aug. 20, the special area will open the Shanghai International Reinsurance Exchange Center on its fourth anniversary.

Finally, the goal is to balance money flows. China transferred around CNY112 billion (USD15.5 billion) of insurance premiums abroad last year, nearly four times that of incoming premiums, resulting in a big trade deficit, according to public data.

Editor: Emmi Laine