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9/4 M97/February 2018 Reinsurance

A2G Multi-lingualism
The reinsurance market must be able to converse with its clients and understand the information being
sent to them. This means that some translation facility into an acceptable language must be available
within the market.

A2H Stable legal and regulatory environment
The courts and regulatory authorities must be acceptable to the clients of the reinsurance market and
this includes the need for a legal framework adapted to the sector. For example, English law has built up
a large background of developed reinsurance law and is recognised as a choice of law for disputes.
The regulatory authorities must be recognised as being sound and not allowing reinsurers to set up
Regulatory authorities
must be recognised without sufficient resources to provide security. This relates to the long-term aspect of the reinsurance
as being sound industry in that reinsurers must be available to pay losses sometimes many years after the contract
originally incepted.

A2I Liberal attitude by authorities
Authorities must allow the growth of the sector without imposing too many restrictions in terms of
bureaucracy and taxation. At first glance, this requirement may seem at odds with those discussed in
section A2H. In essence, reinsurers want the freedom to grow their business whilst accepting the
constraints that any proper regulatory and supervisory framework is likely to want to impose.
A2J Quality family life

Where companies are unable or unwilling to recruit locally they have to consider importing their own
talent from elsewhere. Whether individuals will want to relocate is another matter. Much will depend on
the quality of life that the company is able to offer that talented individual in the territory in which the
relocation is proposed. Furthermore, the companies will need to consider whether they can look after the
aspirations of staff together with the welfare of spouse and children.

A2K Time zone Reference copy for CII Face to Face Training
With the advances in telecommunications, this has had less impact. However, staff do not want to be
working unsociable hours in the office for long periods of time. In a reinsurance market, staff need to be
available to supply answers when their clients require them. Therefore, there generally needs to be some
overlap in the time zones between the relevant markets, so that direct communication is available at
least some of the time.

Activity
It is January and you are a reinsurance technician located in Zurich. Based on Central European Time (CET) consider
what time you would want to make a conference call to your clients’ breakfast meeting in Chicago.

A2L Foreign presence
A country’s own reinsurers do not solely dominate the market. A strong foreign presence allows the
A country’s own
reinsurers do not development of international reinsurance rather than a strong concentration on the domestic market
solely dominate the only. This reflects the cosmopolitan nature of the reinsurance community.
market
A2M Strong national industry
9 The strength of the national industry of a country can help the development of the reinsurance industry.
Chapter For example, the growth of the German reinsurance industry was possible mainly due to a strong

domestic insurance industry.

A2N Centralisation
Where competition from other cities in the country or other cities in nearby countries is limited, this is a
distinct advantage in attracting reinsurers to a market. For example, in the UK, although there are other
regional centres such as Liverpool and Edinburgh, reinsurance has always been conducted
predominantly in London and any reinsurer looking to locate in the UK will always look to London.