Regulatory advances fail without a Europe-US agreement
Friday, 10 21 2016, Category: Insurance and Reinsurance, Country: World
Improvement in the efficiency of reinsurance regulation, which in recent years has made it easier for international firms to reinsure US risks, is at risk of being undone if Europe and the US do not reach a covered agreement, warned the International Underwriting Association (IUA).
The collateral requirement for international firms to reinsure have been reduced in recent years, allowing capital to be deployed more effectively and reducing cost unnecessary pressures.
However, the introduction of Solvency II has created difficulties with US firms that are not deemed to be subject to an equivalent regulatory regime.
The IUA suggests that this could bring a halt to further progress in reducing US collateral barriers.
Source: Intelligent Insurer