Life Insurance Securitisation in Europe: An Overview on the Effects of Alternative Capital Resources and its Relation to Regulator and IFRS Guidelines
NRG Working Paper No. 05-05
21 Pages Posted: 19 Apr 2006
Date Written: November 2005
Abstract
Recently Life Insurance Securitisation practices have been probed in dedicated areas to access the wider capital markets. These developments have shown a rising interest among leading insurers and reinsurers to start building experience with securitisation practices, either for risk transfer, raising additional capital or a combination of these. As these structures have proven to be cost effective and generally accepted in the banking segment it is foreseen that securitisation can become an accepted method in insurance environments too in the foreseeable future.
This paper provides an overview of recent practices in Life Insurance Securitisation and aims to demonstrate that Life Insurance Securitisation has viable potential for insurance companies in the future to reduce the cost of (regulatory) capital and transferring risk to the capital markets.
Keywords: Life Insurance Securitisation, risk transfer, capital raising
JEL Classification: G2
Suggested Citation: Suggested Citation