The first provision on insurance listed in the article is a key point in expanding health insurance companies’ portfolios globally, thus spreading their risk.
The second provision is also helpful in that regard, but it may not have as great an impact as 1. because newly formed companies are not likely to expand to China anytime soon.
Third, the lines of reinsurance written by China Reinsurance is unknown to me. If it offers health reinsurance treaties, it may provide an opportunity for US health insurers to reduce risk in their portfolios, enabling it to take on more ‘prexer’ risks and high cost risks.
All of the above aspects suggests the deal made by Trump’s Administration intends to, and will, increase the supply of insurance globally… to spread risk and lower costs through increased competition. This is a win-win for China, the USA, and other globally active insurance organizations.
Clarification of my comment on #2. A better wording would be “newly formed (in the US) companies… And small, existing health insurance companies may likely expand locally before they grow internationally.”
The first provision on insurance listed in the article is a key point in expanding health insurance companies’ portfolios globally, thus spreading their risk.
The second provision is also helpful in that regard, but it may not have as great an impact as 1. because newly formed companies are not likely to expand to China anytime soon.
Third, the lines of reinsurance written by China Reinsurance is unknown to me. If it offers health reinsurance treaties, it may provide an opportunity for US health insurers to reduce risk in their portfolios, enabling it to take on more ‘prexer’ risks and high cost risks.
All of the above aspects suggests the deal made by Trump’s Administration intends to, and will, increase the supply of insurance globally… to spread risk and lower costs through increased competition. This is a win-win for China, the USA, and other globally active insurance organizations.
Clarification of my comment on #2. A better wording would be “newly formed (in the US) companies… And small, existing health insurance companies may likely expand locally before they grow internationally.”