The Eurasian Economic Union (EEU) is reportedly planning to develop a common reinsurance structure for countries in the Commonwealth.
Industry reports claim that the EEU is looking to create a common reinsurance model in order to remove cross-border reinsurance barriers.
It’s expected that insurance companies will be able to share the assumed risks of the new, common reinsurance structure, and such a scheme could also be used to provide reinsurance protection for natural disasters.
The new model would be designed to assume risks that are either impossible or simply impractical for reinsurers within each Commonwealth member state to tackle, which could include natural catastrophe events.
According to Tigran Davtyan, Director of the Financial Policy Department of the EEU, the creation of a common reinsurance structure is expected to improve the availability of reinsurance capacity for Commonwealth countries, and also reduce currency risks.