BIS warns of growing offshore reinsurance risk
Deals by private equity-backed life firms could mask risk in $25 trillion industry, report says
The growing use of complex offshore reinsurance deals by private equity-backed insurers could lead to a build-up of hidden risks, the Bank for International Settlements says in a report today.
A rapid increase in firms employing so-called asset-intensive reinsurance is of particular concern, the BIS says. The report emphasises that co-ordination among regulators will be crucial to manage the risks.
“Reinsurance chains have become more complex,” the BIS states. “The life insurance sector has become
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