Changing regulation will drive demand for reinsurance
Tuesday, 11 03 2015, Category: Insurance and Reinsurance, Country: Asia
The introduction of risk-based capital (RBC) regulatory regimes by regulators across Asia will accelerate the development of insurance markets in the region and drive demand for reinsurance as insurers change the way they manage their capital, Kenrick Law, regional chief executive, Allianz Reinsurance Branch Asia Pacific.
Regulators such as Hong Kong and India are working on their own regulations, as are a number of other regulators. As such regimes are introduced, insurers will increasingly use reinsurance as a form of capital relief, Law believes.
“Insurers are intensifying their efforts to search for alternative and innovative ways to access capital and reinsurance protection. As the RBC regime starts to take effect in various markets, insurers will consider reinsurance as a means to provide solvency relief,” he said.
Source: Intelligent Insurer