Reinsurers face higher transatlantic competition
Saturday, 01 21 2017, Category: Insurance and Reinsurance, Country: Europe
The Covered Agreement between the EU and the US makes these markets more attractive for reinsurers from the opposite side of the Atlantic, increasing competition and therefore adding pressure on pricing and conditions.
The European Union and the US on January 13 unveiled an agreement which removes collateral and local presence requirements for reinsurance.
For EU-based reinsurers operating in the US this is expected to free around $40 billion of collateral.
Source: Intelligent Insurer