21 April 2021
The IFoA working party: Insurers hidden risk from reinsurance recaptures – the perspective of UK annuity writers launched a survey on Monday, 19 April that seeks to explore annuity writers exposure to; and management and mitigation of a reinsurance recapture or similar event that leads to an insurer being required to recognise previously reinsured risk(s). The working party was set-up to contribute to the topic and support market practitioners. The participating of annuity writers in the survey will enhance the usefulness of the working party’s output in due course.
The survey itself has been organised along 7 themes:
- Current reinsurance counterparty exposure
- Longevity and quota share reinsurance recapture provisions
- Management Information, approach to setting risk limits & monitoring of all reinsurance exposures
- Collateral exposures supporting annuity related reinsurance and other protections
- Capital modelling
- ORSA (including stress & scenario testing) and decision making
- Reinsurance default or recapture events within the context of recovery & resolution planning
The survey may take up to 90 minutes to complete.
All responses will be treated confidentially.
You can reach the chair of the working party: Mudi Ugono at mudi.ugono@bankofengland.co.uk if you have any questions.
Please respond by 18 June.