The Australian Prudential Regulation Authority is moving forward with its process to ease access to alternative reinsurance solutions in the country, including insurance-linked securities (ILS), with one updated proposal now being to remove the requirement for a reinstatement completely for instruments like catastrophe bonds.
As we reported back in November 2024, the Australian Prudential Regulation Authority (APRA) had recognised that regulations hinder access to alternative reinsurance solutions in the country, especially for ILS such as catastrophe bonds.
This came at a time when reinsurance market conditions had become more challenging, through higher pricing and increased retentions for Australian insurers, so the regulator wanted to make it simpler for them to access the capital markets using insurance-linked securities (ILS) structures.
FULL ORIGINAL PUBLICATION HERE