China - offshore deposit system for reinsurers
Friday, 03 17 2017, Category: Insurance and Reinsurance, Country: Asia
The China Insurance Regulatory Commission (CIRC) has introduced system that will require foreign reinsurers to deposit funds with unaffiliated domestic commercial banks in a move that it said will mitigate the credit risk arising from foreign carriers operating in the country.
The regulator seems to have indicated that it has introduced the system partly because of a lack of faith in international credit ratings, which it said were insufficient in determining the credit risk of offshore reinsurers alone.
Source: Intelligent Insurer