Protectionist practices restrict reinsurance market
Tuesday, 10 25 2016, Category: Insurance and Reinsurance, Country: World
Protectionist restrictions on allowing foreign insurance and reinsurance players into local markets are hindering market development, creating barriers to economic growth and risking the build-up of concentrations of risk, according to Insurance Europe.
As certain jurisdictions place protectionist controls on which insurance or reinsurance firms can easily do business there, Insurance Europe explains that this can have a negative effect on policyholders, with costs potentially increasing.
It can also hurt domestic insurers, as access to reinsurance capital from a broad range of counterparties and geographies is essential to bring costs down for risk transfer, as well as to broadly disperse the risk.