‘Opportunity is always in China’: rapid industrial growth ups ante for (re)insurance market: Rare Earth's Wei Wang
InsuranceAsia News, SEPTEMBER 16 2025, by Joana Nguyen
New energy storage, offshore wind power and overseas projects under the Belt and Road Initiative are among the growth areas driving China's evolving (re)insurance industry, Wei Wang, CEO of Rare Earth Insurance Partners, told InsuranceAsia News' Between The Lines podcast.
“China has never been a mature market like the US, UK or Japan. Not being mature does not mean the development is slow, but it is because of the changes that happen all the time in all industries in China, which in turn brings both opportunities and challenges,” Wang said.
“As the world's largest electric vehicle market, China is seeing growing demand for solutions that cover the new energy storage risk, often with batteries for EVs.
“This risk is not only in the motor sector, but also in others. We are working with insurers to design new coverage to meet the demand of the new energy storage risk.”
Founded in 2017, Hong Kong-headquartered Rare Earth is a marine and specialty (re)insurance broker. In October 2024, it obtained a wholesale direct broker license in China, with the launch of Rare Earth Shanghai.
Offshore wind power, where China is also now the biggest market in the world, is another specialty area gaining momentum, according to Wang.
And as phase two of the Belt and Road Initiative, a global infrastructure development strategy by the Chinese government, has seen an increased participation from private, small to medium-sized enterprises, instead of big, state-owned companies, as seen in the first phase, there has been a new shift in demand for insurance.
“Moreover, projects have also moved from huge constructions in Africa to manufacturing, prompting the insurance industry to adapt,” Wang added.
“We are working on designing and providing a new package to meet this new demand, as it's quite complicated since the client is probably not in China, but their interest in the property is, for example, in Thailand. So we need to be the expert, not only in China, but also in Thailand, to serve them.”
At its own pace
The capacity of the Chinese market has significantly developed in the past 20 years, according to Wang.
“Unlike in the past, it no longer heavily relies on the international market. While it does depend on the international reinsurance market to some extent, China can address capacity issues within the country,” he said.
It makes the Chinese market unique, as it is international in some respects but not in others, he added.
“Historically, Chinese insurance companies, be it PICC, Ping An or CPIC, relied heavily on Lloyd's syndicates and reinsurers, but that has decreased,” Wang added.
“Whether in a hardening or soft market, these changes have minimal impact on the development of the Chinese insurance sector, which operates at its own pace.”
Business positioning
Rare Earth obtaining its wholesale direct broker license in China followed the firm's acquisition of Shanghai Chengji Insurance Broker, which provided Rare Earth with the necessary license without the need to apply separately with the National Financial Regulatory Administration.
“China is our most important market, and being able to obtain a license to become a wholesale direct broker has upgraded our position from the reinsurance end,” Wang said.
“We don't need to build a huge sales team and face every individual client, but we provide products to direct brokers or other intermediaries such as sales channels, platforms, and associations.”
He added that Rare Earth Shanghai targets small to medium-sized brokers, as well as in-house brokers, who may find it hard to catch up with changes in demand and the transformation of Chinese industrial development.
“Our strategy is to be the wholesale broker in China where we can work together with those
medium-sized, small-sized or the in-house broker to face the challenge together.”
Wei Wang, Rare Earth Insurance Partners
“A couple of years ago, [retail brokers] primarily served clients with traditional products, where the only change was whether the price was up or down at renewal,” he said.
“But nowadays, it's a big test for their capability. If they don't have the learning skills and the cooperation resources in the market, it's difficult for them to survive.
“So our strategy is to be the wholesale broker in China where we can work together with those medium-sized, small-sized or the in-house broker to face the challenge together.”
In terms of business lines, while a large part of Rare Earth's portfolio is in marine, Wang said they are open to opportunities.
“Our plan is if there is an opportunity, and we have the capabilities or resources, we'll pursue it. It doesn't matter – marine or non-marine. The opportunity is always in China,” he said.
