New York--Finite reinsurance has drawn regulatory scrutiny inrecent months, but state regulators in the past have found suchtransaction "useful" and were "complicit" when insurers createdthem, according to experts speaking at an industry conference.
The Reinsurance Association of America defines a finitearrangement as "a highly structured reinsurance contract where thestructured elements reduce the amount of risk assumed by thereinsurers to the point that it may not meet the accountingrequirements of risk transfer."
Speaking at a panel discussion during Standard & Poor'sannual insurance conference, Peter Porrino, global director ofinsurance industry services at Ernst & Young, said "at timesregulators found these contracts useful."
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
