Regulatory Alerts2021-10-21
Guidance Note for Licensed Insurers on Reinsurance and Other Forms of Risk Transfer
The Commission issued this guidance to require licensed insurers to effectively manage reinsurance and risk transfer within their risk management frameworks. It mandates that ceding insurers establish appropriate reinsurance strategies, implement robust internal controls to mitigate reinsurer credit risk, and integrate these factors into their capital and liquidity assessments. The document further requires insurers to address operational risks, ensure timely contract documentation, and proactively manage liquidity risks arising from potential delays in reinsurance settlements.
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