UK - greater oversight of longevity risk transfer
Friday, 02 12 2016, Category: Insurance and Reinsurance, Country: United Kingdom
The Bank of England’s Prudential Regulation Authority (PRA) is seeking to ensure that it has a sufficient level of oversight of the longevity risk transfer and reinsurance market as it evolves, stressing the need for transactions to feature a true transfer of risk.
In a letter published by the Bank of England, Chris Moulder, director of general insurance at the PRA, and Andrew Buller, director of life insurance at the PRA, explain the regulators desire to be kept informed of all longevity risk transfer transactions entered into by companies under its regulation.
The PRA’s letter says that it recognises that the longevity risk transfer market has been under development for a number of years, but that with the implementation of Solvency II there may now be “an additional incentive to undertake transactions to transfer longevity risk by way of reinsurance.”