According to Fitch Ratings, the proposal from the Australian Prudential Regulation Authority (APRA) to remove the requirement for reinsurance arrangements to have a reinstatement in place could be a favourable move for the insurance-linked securities (ILS) market, allowing more risk to be transferred to investors from Australia’s insurance sector.
As we reported earlier this month, the Australian Prudential Regulation Authority is consulting with industry over changes to regulations to make it easier for insurers in the country to access alternative forms of reinsurance capital.
The APRA has seemingly recognised that regulations are hindering access to alternative reinsurance solutions including insurance-linked securities (ILS) in Australia and that market participants would appreciate easier access to solutions such as catastrophe bonds.
FULL ORIGINAL PUBLICATION HERE
