The report on reinsurance and the financial markets by a study group of the influential Washington-based G30 urges a better articulated and more consistent approach to regulating reinsurers. Reinsurance â insurance for insurers â is often little understood in the wider financial community, the report acknowledges.
The study group strongly recommends that supervisors world wide adopt a regulatory approach that reviews the condition and activities of reinsurance groups on a consolidated basis, using risk-based capital standards.
Such an approach would help establish balanced competition in the international reinsurance market, Alastair Clark, an adviser to the governor of the Bank of England and co-chairman of the study group, told reporters in London earlier this week. Informal soundings of regulators had produced generally positive responses to the proposals, Clark told a press conference hosted by the UK central bank.