Regulatory bodies in Singapore, Hong Kong and the UK have launched consultations to introduce innovative risk transfer solutions built on protected cell companies. They aim to improve access to insurance covers for SMEs and to better spread peak natural catastrophe exposures.
Stockholm/Frankfurt: Insurance regulators are tightening rules for asset-intensive reinsurance while promoting alternative forms of insurance risk transfer, Fitch Ratings said in its latest update on global insurance regulatory developments, which covers April to September 2026.
The US National Association of Insurance Commissioners (NAIC) intends to revise the risk-based capital treatment of recapture risk related to asset-intensive reinsurance agreements outside of reciprocal jurisdictions. In response, the Cayman Islands has applied for Qualified Jurisdiction Status with the NAIC.
Meanwhile, the UK’s Prudential Regulatory Authority proposes to increase the counterparty default adjustment for funded reinsurance treaties.
Regulatory bodies in Singapore, Hong Kong and the UK have launched consultations to introduce innovative risk transfer solutions built on protected cell companies. They aim to improve access to insurance covers for SMEs and to better spread peak natural catastrophe exposures.