Regulators propose new reinsurance rules

Worldwide insurance regulators have put together an outline on reinsurance rules through the International Association of Insurance Supervisors (IAIS). At its annual meeting in Chile, the IAIS adopted “Principles on the Minimum Requirements for the Supervision of Reinsurers”. The paper outlines elements of a supervisory framework common to both primary and reinsurers.”Today, reinsurers are supervised differently from jurisdiction to jurisdiction or not at all. The underlying premise for the new principles is that all reinsurers must be supervised,” states an IAIS release. “It anticipates a global approach to the supervision of reinsurers that will be anchored in the home jurisdiction.”More detailed standards are to be developed to take into account the unique risks reinsurers face, the IAIS adds. “While recognising the strong performance of the reinsurance sector following the shocks of the past year, the Financial Stability Forum (FSF) has also endorsed introduction of principles for reinsurance supervision, calling for improved transparency in reinsurance markets and enhanced disclosure of reinsurers’ activities.”Also at the meeting, the IAIS announced the promotion of Yoshihiro Kawai to the position of secretary general. The former deputy secretary general will take over next summer following the retirement of Kurt Hohlfeld. Hohlfeld is responsible for establishing the IAIS secretariat in Switzerland.