Insurers remain confident post-Brexit despite access concern
Insurance companies in the UK are more confident than the wider financial sector according to a new report from PwC.
It found that, despite a high level of concern about access to the European market once the UK leaves the EU, insurers see opportunity ahead with the acceleration of transformation change.
The industry is focused on deepening relationships with domestic customers but is also intending to create jobs in the industry, especially given London’s importance as a global insurance center.
However, PwC’s UK insurance leader Paul Howe says that some insurers have some work to do when it comes to their workforce.
“It is surprising that a third of the industry has not yet taken steps to understand how the UK leaving the EU will impact its people. The sooner firms understand the potential impact, the sooner they can reassure staff and concentrate on making the most of the opportunities ahead,” Howe said.
Citi sells reinsurance business to Munich Re subsidiary
Citi has completed the sale of its special purpose financial insurance business Financial Reassurance Company 2010, Ltd. to a subsidiary of global reinsurer Munich Re.
Citi Holdings CEO Francesco Vanni d'Archirafi said, "This transaction is a positive outcome for Citi and joins this business with an industry leader, Munich Re. It also represents yet another step in our strategy to reduce the assets and businesses in Citi Holdings."
The deal involves around $460 million of assets from Citi’s balance sheet although financial details of the transaction have not been released.
Canadian mortgage insurers to face tougher capital requirements
The rising cost of homes in Canada compared to household incomes has prompted the financial regulator to propose a new framework to assess capital requirements for mortgage insurers.
The Office of the Superintendent of Financial Institutions says that it wants to ensure a more risk sensitive framework for federally regulated mortgage insurers to ensure they have enough capital to withstand potential defaults as rising house prices put pressure on household budgets.
“When house prices are high relative to borrower incomes, the new framework will require that more capital be set aside,” said Superintendent Jeremy Rudin. “Ultimately this will continue to provide a level of protection to both policyholders and unsecured creditors.”
OFSI is inviting stakeholders to submit comments until October 21, 2016.