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Global reinsurers remain resilient amid financial crisis, says IAIS report
December 17 2008:
The International Association of Insurance Supervisors (IAIS) today published its fifth annual
overview of the financial condition of reinsurers, Global Reinsurance Market Report 2008.
The report assesses reinsurance market stability and linkages of the reinsurance sector as
well as the impact of the current turmoil on the reinsurance sector.
It is based on data
submitted by the world’s largest reinsurers. Over the years, this annual overview has evolved
from providing general reinsurance related data and analysis to including up-to-date
coverage of market trends and developments. This year’s report includes coverage of
potential vulnerabilities from a systemic perspective.
Reinsurers play an important role in the functioning of efficient insurance markets through
their shock absorbing capacity, including coverage against major reinsured natural
catastrophes. Following record losses in 2005 and despite some major catastrophes due to
winter storms and hurricanes, both 2006 and 2007 were profitable years for reinsurers.
In
fact, 2007 was an especially profitable year for reinsurers, with some reporting the best
results over the past five years. As a result, the reinsurance industry has a solid financial
base to face the challenges of the continuing financial crisis. However, as the impact of the
financial crisis grows in scope, reinsurers may be faced with difficult market and credit
conditions.
Peter Braumüller, Chair of the IAIS Executive Committee, noted that “amid the ongoing
financial turmoil, the global reinsurance market has proven relatively robust and resilient
against direct shocks thus far, which has contributed to both the stability of the global
insurance markets as well as ultimately the security of individual insurance customers”.
(This is Press Release of IAIS)
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