Reinsurance rules reduced

FSA ends super-equivalence threat from new EU directive

The Financial Services Authority (FSA) has taken the plunge and will reduce its requirements for reinsurance supervision to avoid super-equivalence with the EU Reinsurance Directive. The UK’s existing rules for reinsurance are notably in excess of the minimum requirements of the Reinsurance Directive, generally following the same requirements as for direct insurance, and proved to be a significant test of the FSA’s resolve to avoid gold-plating EU regulations.