The International Association of Insurance Supervisors (IAIS) released a report yesterday addressing the role of insurance securization as a building block of alternative insurance risk transfer arrangements (ART). The paper identifies and discusses the key recent developments in the sector, focusing specifically on the regulatory, supervisory and operational dimensions.
According to the report, as part of revising and updating all of the IAIS standards and guidance papers on reinsurance, the association is planning to release guidance to the regulatory and supervisory community related to insurance securitization. This is in progress and is expected to be finalized in 2011. This paper builds on prior IAIS work on the matter, specifically the 2003 Issues Paper on Non-Life Insurance Securitization, the 2003 Issues Paper on Life Securitization, and the 2006, 2007 and 2008 editions of the Global Reinsurance Market Report.