Insurance securitizations have been slated to be the next big thing among European insurers for sometime now, but as the preferred reinsurance market continues to impose more difficulties, insurance companies are more aggressively investigating what the best way to incorporate this tool will be.

"Reinsurance is generally becoming more expensive following the WTC event last year," said Simon Harris, vice president and senior credit officer of European insurance at Moody's. "Also, the FSA has said that it's looking into the use of financial reinsurance. This is something that was once intensely used in the U.K. but may be more limited in the future.

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