IAIS flags concerns about offshore reinsurance growth

Passing on risk to foreign firms makes regulation harder, report says

Regulators are increasingly concerned about the ballooning number of offshore reinsurance transactions, saying the practice makes it harder to identify hidden risks in the industry.

The rise in offshore funded reinsurance transactions poses a “significant challenge” to regulators, who may struggle to understand the nuances of regulation in other countries, says a report from the International Association of Insurance Supervisors (IAIS). 

“This knowledge gap may pose hurdles to effective oversight