The International Association of Insurance Supervisors (IAIS) published its first Global Reinsurance Market Report, based upon global reinsurance market statistics for the financial year 2003, covering a very high proportion of reinsurance activity worldwide.
Regarding reinsurers’ participation in credit risk transfer, the data provided by the reporting entities showed little evidence of participation by reinsurers in CRT, other than in the monoline sector. Reinsurers’ involvement in derivatives was found to be primarily for hedging purposes.
Counterparties exposed to reinsurers naturally included the insurance sector. Similarly, the statistics demonstrate reinsurers’ exposure to other reinsurers. In both cases this is a reflection of diversification of risk within the sector. There was no evidence of significant concentration of exposure either to or by other sectors.
There are currently diverse accounting conventions and regulatory requirements across different jurisdictions. Development in these areas is essential for consistency and comparison of reported financial information and other information required for regulatory purposes, all of which may be relevant to the supervision of internationally active reinsurers. The developments towards harmonisation in both regulation and reporting will eventually help to resolve some of the challenges currently faced by the RTG in producing this report.
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© IAIS - International Association of Insurance Supervisors
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