The capital intensive nature of writing annuities under Solvency II increases incentives for UK insurers to transfer annuity risk(s) to external or internal reinsurance entities in pursuit of business and growth objectives.  

The build-up of insurers’ reinsurance exposures and the adverse micro (balance sheet) and macro (limited substitutability) consequences in the event that reinsurance counterparty risks were to crystallise has increased regulators’ interest in this area over time.

The IFoA working party: Insurers’ hidden risk from reinsurance recaptures – the perspective of UK annuity writers has been set-up 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).

There is a dearth of publically available information on the topic; and we hope that the working party’s output will support market practitioners as industry best practice continues to evolve and develop.

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 30 June. 



Question Title

* Name of the entity that the responses are being provided on behalf of (this should be the UK annuity writing entity for whom reinsurance coverage is obtained).

Question Title

* Please provide contact details of who the working party could contact if there are any follow up questions:

 
 12% of survey complete.

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