Africa - Reinsurance solution to regulatory changes
Wednesday, 10 12 2016, Category: Insurance and Reinsurance, Country: Africa
Using reinsurance to free up capital to meet insurance regulator demands for increased capitalisation is likely to become a useful tool for insurers operating across the continent.
A new report from AM Best suggests: “A strengthening of solvency regulations will likely create opportunities for African reinsurers, at least in the initial stages, as reinsurance is sought as part of companies’ capital management strategy, to strengthen solvency requirements.
This will offset higher capital burdens associated with potential new reserving standards for certain lines of business and the risks connected with (re)insurers’ insurance, investment, and counterparty risk strategies.
Source: Commercial Risk Europe