The response outlines the areas of improvement that would allow the reinsurance industry to support (re)insurers as providers of long-term cover and investments and key players in the UK's sustainable growth and climate-change goals.
The RAB, which comprises Europe's largest reinsurers (Gen Re, Hannover Re, Lloyd's, Munich Re, PartnerRe, SCOR and Swiss Re), is the main advocacy body of the reinsurance industry on European issues. The RAB accounts for more than 50% of worldwide reinsurance business. Its members seek to promote a stable, innovative, and competitive reinsurance environment and are committed to promoting a regulatory and trading framework that facilitates global risk transfer through reinsurance and other insurance linked capital solutions.
The response outlines several points:
oOpen reinsurance markets are vital to enable the insurance sector to operate efficiently, to diversify risk globally and to promote the continued growth and resilience of global and national economies.
oAs a cross-border, business-to-business activity, reinsurance should receive special, fit-for-purpose treatment in regulation.
oAn appropriate regime governing the activity of branches of foreign (re)insurers is key to maintaining and promoting the UK as an internationally competitive (re)insurance hub.
oPrudential supervision of branches should have a high degree of recognition of home state, legal entity supervision that is already in place.