Featured Product

    IAIS Publishes Global Insurance Market Report for 2019

    March 18, 2020

    IAIS published the Global Insurance Market Report (GIMAR) for 2019. The report discusses the global insurance and reinsurance sectors, with focus on the performance of the sector, key risks facing the sector, and key developments in the global insurance market from a supervisory perspective. The report also presents the results of the Global Reinsurance Market Survey covering 47 reinsurers in nine jurisdictions in North America, Europe, and Asia while linking the financial position of reinsurers to the broader financial economy.

    The GIMAR report discusses the performance of life insurance sector within a prolonged low-yield environment. It highlights that the sector may be subject to various risks and challenges, given a potential rate increase or a sluggish growth of guaranteed rate products sales. The report for this year also focuses on the specificities of cyber insurance and how insurers tackle risk pricing in light of the lack of historical data sets. The report presents the key challenges and regulatory considerations associated with cyber insurance. The report recommends that supervisors need to share information and best practices to enhance their own ability to evaluate the pricing and exposure of insurers within their jurisdictions. They also need to consider how they can support an integrated approach to cyber risk that will adequately reflect the risk in insurers’ strategy and risk appetite. Initiatives are under way in several countries to foster greater risk awareness and to push insurers to adopt conscious risk management and supervision, but additional efforts are required by both supervisors and insurers.

    One key finding of the Global Reinsurance Market Survey is that the reinsurance market is still recovering and further consolidating its capacity following the series of severe natural catastrophes that took place in 2017. However, capital has proven an effective loss buffer when held at sufficient levels. The Survey demonstrates the extent to which the reinsurance industry relies on retrocession as a tool to reduce and diversify risk. If the trend of declining retrocession persists, the industry may experience a shift toward other risk-mitigating mechanisms. Equity and debt securities still remain the largest asset classes for investment in the reinsurance industry, cumulatively accounting for 77.5%. Short-term portfolios tend to be invested in highly liquid securities, while reinsurers’ exposures are mainly concentrated in the insurance market.

     

    Keywords: International, Insurance, Reinsurance, GIMAR, Macro-Prudential Policy, Cyber Insurance, Life Insurance, Regtech, Global Market Reinsurance Survey, IAIS

    Related Articles
    News

    APRA on Changes to Reporting Obligations for Banks Due to COVID-19

    APRA, in collaboration with the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS), published a letter outlining temporary changes in reporting obligations for authorized deposit-taking institutions and registered financial corporations, in response to COVID-19.

    April 01, 2020 WebPage Regulatory News
    News

    OSFI Outlines Capital Treatment for Some COVID-19 Mitigation Measures

    OSFI issued a letter outlining how federally regulated banks should treat the new capital made available to small and medium-size enterprises (SME) through the recently announced government programs.

    March 30, 2020 WebPage Regulatory News
    News

    APRA Announces Deferral of Capital Reform Implementation

    APRA announced that it is deferring the scheduled implementation of Basel III reforms in Australia by one year.

    March 30, 2020 WebPage Regulatory News
    News

    BaFin Explains Regulatory Measures to Address Impact of COVID-19

    BaFin has released new developments and important information about COVID-19 and its effects on the financial and banking system.

    March 30, 2020 WebPage Regulatory News
    News

    ECB Updates Recommendation on Dividend Distribution Policy of Banks

    ECB updated its recommendation to banks on dividend distributions.

    March 30, 2020 WebPage Regulatory News
    News

    EC Amends Implementing Standards on Supervisory Reporting Under CRR

    EC published Regulation 2020/429 that amends the Regulation 680/2014, which sets out implementing technical standards on supervisory reporting of institutions under the Capital Requirements Regulation or CRR (575/2013).

    March 30, 2020 WebPage Regulatory News
    News

    HKMA Announces Deferral of Implementation of Final Basel III Package

    HKMA announced its plans to defer the implementation of final Basel III package, inline with the timeline announced by the Group of Central Bank Governors and Heads of Supervision (GHOS).

    March 30, 2020 WebPage Regulatory News
    News

    BCBS Defers Implementation of Final Basel III Standards by One Year

    BCBS has announced deferral of the implementation date of the final Basel III standards by one year, to January 01, 2023.

    March 27, 2020 WebPage Regulatory News
    News

    EC Regulation on CCR Mitigation for Covered Bonds and Securitizations

    EC published the Delegated Regulation 2020/447 with regard to regulatory technical standards on the specification of criteria for establishing the arrangements to adequately mitigate counterparty credit risk, or CCR, associated with covered bonds and securitizations.

    March 27, 2020 WebPage Regulatory News
    News

    IFRS Publishes Statement on Its Work During the COVID-19 Crisis

    IFRS, in its statement, emphasized that it shares global concerns about the impact of COVID–19 and is supporting its stakeholders by reconsidering timelines of its meetings and publications, providing information on the application of IFRS 9 on financial instruments, and offering calendar updates on ongoing activities.

    March 27, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4913