Consultation on the annexes to the opinion on the use of risk mitigation techniques by insurance undertakings: mass-lapse reinsurance and reinsurance agreements’ terminat

Interested parties in the insurance sector.

The first annex provides further guidance to supervisors on the treatment of mass-lapse reinsurance, promoting greater supervisory convergence across Europe in the context of evolving risk mitigation methods through the use of reinsurance.

The second annex addresses specific terms of reinsurance agreements' termination clauses that can compromise the effective transfer of risk. In particular, this concerns termination clauses in reinsurance agreements that absolve the reinsurer from its share on legitimately incurred losses within the reinsurance treaty period.