{"id":383397,"date":"2019-06-12T14:58:36","date_gmt":"2019-06-12T18:58:36","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/?p=383397"},"modified":"2019-11-13T19:31:34","modified_gmt":"2019-11-14T00:31:34","slug":"osfi-seeks-to-curb-growing-reinsurance-risks","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/from-the-regulators\/osfi-seeks-to-curb-growing-reinsurance-risks\/","title":{"rendered":"OSFI seeks to curb growing reinsurance risks"},"content":{"rendered":"<p>Federal financial regulators are calling on insurers to ensure that they are uncovering, and managing, risks associated with their increasing use of reinsurance.<\/p>\n<p>Following a consultation carried out last year, the Office of the Superintendent of Financial Institutions (OSFI) is proposing revisions to its guidance on reinsurance.<\/p>\n<p>Among other things, OSFI said the proposed changes aim to push insurers to do a better job of identifying reinsurance risks, particularly counterparty risks, and to ensure that they are properly managing those risks.<\/p>\n<p>The regulator noted that some insurers are making greater use of reinsurance, and that some have increasingly large, concentrated exposures to particular firms.<\/p>\n<p>It&#8217;s worried that these sorts of exposures can increase risks to insurers and policyholders &#8220;in the event that a large loss occurs if its reinsurer becomes distressed and fails to pay a claim&#8230;&#8221;<\/p>\n<p>Additionally, OSFI noted that some insurers are not consistently following its expectations for prudent reinsurance risk management.<\/p>\n<p>&#8220;As a result, some [insurers] may have more risk associated with their reinsurance programs than appropriate,&#8221; it warned.<\/p>\n<p>OSFI is planning to finalize the updated guidance in 2020. It&#8217;s seeking comment on today&#8217;s proposals by Aug. 16.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Regulator seeks comments on proposed revisions to reinsurance guidance<\/p>\n","protected":false},"author":147314,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2324],"tags":[3290],"yst_prominent_words":[6,1811,6652,7035,7471,8455,8672,10925,12027,23414,29423,44535],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/383397"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/147314"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=383397"}],"version-history":[{"count":4,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/383397\/revisions"}],"predecessor-version":[{"id":383424,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/383397\/revisions\/383424"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=383397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=383397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=383397"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=383397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}