collateral requirements

Around the January reinsurance renewals this year there was a lot of talk regarding brokers and ceding companies pushing insurance-linked securities (ILS) funds to agree to more stringent terms related to collateral release and rollover.

We wrote back in September about the announcement from Hannover Re that the Florida state insurance regulator had lowered the collateral requirement which was required of Hannover Re to allow them to participate in the Florida market. Now that change is widening to more reinsurers.