About this working party
The main areas of focus of the research are:
- Acceleration
of growth – To explore the role funded re plays in the predicted BPA
volume growth and the extent to which the risks presented by increasing
competitive pressures among BPA players of the market are appropriately
managed.
- Counterparty exposure – To investigate the reinsurance counterparty exposure of BPA insurers to funded re-counterparties and the extent of systemic risk in the industry that could be caused by the failure of any particular reinsurer.
- New entrants – to understand business practice and operating models of new entrants, both in terms of BPA insurers and funded re-reinsurers and the impact of these new entrants on industry economics.
- Collateral guideline – To understand the current variations of industry practices in investment guidelines of funded reinsurance, and establish an industry view on the range of best industry practices to reach a balanced view between commercial viability and robust risk management principles.
- Recapture provision – To systematically examine the appropriateness of the way in which the recapture provisions/scenarios are currently set and priced for in funded reinsurance transactions.
- Counterparty exposure – To investigate the reinsurance counterparty exposure of BPA insurers to funded re-counterparties and the extent of systemic risk in the industry that could be caused by the failure of any particular reinsurer.
- New entrants – to understand business practice and operating models of new entrants, both in terms of BPA insurers and funded re-reinsurers and the impact of these new entrants on industry economics.
- Collateral guideline – To understand the current variations of industry practices in investment guidelines of funded reinsurance, and establish an industry view on the range of best industry practices to reach a balanced view between commercial viability and robust risk management principles.
- Recapture provision – To systematically examine the appropriateness of the way in which the recapture provisions/scenarios are currently set and priced for in funded reinsurance transactions.
Chair: Wei Hou
Established: 2024
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