The International Association of Insurance Supervisors is getting ready to draft new reinsurance and insurance securitization standards.
The IAIS, Basel, Switzerland, will be “publishing specific standards and guidance to the regulatory and supervisory community on reinsurance and other forms of risk transfer, including insurance securitisation,” IAIS officials write toward the end of a mid-year world reinsurance report.
The IAIS officials who wrote the report are members of the IAIS Reinsurance Transparency Subgroup and the IAIS risk transfer subcommittee.
The authors of the report discuss Ballantyne Re P.L.C., a company that a unit of Scottish Re Group Ltd., Hamilton, Bermuda, formed to help insurers meet Regulation Triple X term life reserving requirements. A decline in the market value of mortgage-backed securities hurt the market value of Ballantyne Re’s securities, officials write. Similar forces hurt another Scottish Re special purpose vehicle, Orkney Re II, officials write.