Regulatory Alerts2021-04-22
Guidelines for Reinsurance
The Croatian Financial Services Agency (HANFA) issued these guidelines to require insurers and reinsurers to implement comprehensive reinsurance strategies, policies, and internal control systems that ensure financial stability, efficient risk transfer, and robust counterparty selection. The document mandates annual strategy reviews, clearly defines the responsibilities of key functions (risk management, internal audit, compliance, and actuarial), and establishes strict monitoring criteria for reinsurer creditworthiness, concentration risks, liquidity mismatches, and collateral requirements. By aligning reinsurance programs with risk appetite, capital adequacy, and Solvency II frameworks, the guidelines aim to prevent financial instability, optimize capital usage, and safeguard insurers' operational resilience against catastrophic and cyber exposures.