Finite reinsurance transactions attracted the attention of insurance supervisors and beyond recently. This paper considers the resulting and ongoing discussion concerning the regulatory environment for finite reinsurance transactions. Consumer protection and financial stability are reflected in the light of cost-benefit considerations as criteria for the further design of finite reinsurance-related regulation and supervision. At the same time, some of the forces that influence the shaping of regulation and supervision are described. This article concludes that few, concise and, in an ideal case, worldwide applicable rules and principles are best suited to guide the development within the field of finite reinsurance. Such rules and principles would most probably have a positive impact on consumer protection and financial stability. This article therefore supports the IAIS intention to consider the topic of finite reinsurance further.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.