Recognising that regulations hinder access to alternative reinsurance solutions including insurance-linked securities (ILS) in the country, the Australian Prudential Regulation Authority is consulting with industry, as participants there want easier access to solutions such as catastrophe bonds.
In a letter to the Australian insurance industry, APRA Member Suzanne Smith explained that the regulator is consulting on targeted adjustments to the general insurance (GI) industry reinsurance settings, and processes that would assist insurers in gaining broader access to a full-range of reinsurance solutions.
In addition, the consultation is also focused on the potential for adjustments in relation to APRA’s GI reinsurance eligibility criteria.
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