CRO Forum backs mitigation rules

The creation of harmonised rules for the use of derivatives by insurance companies is critical to the development of a level playing field in the European industry, according to a study by the CRO Forum.

The Forum study, "Financial risk mitigation in insurance - time for change", calls for an improvement in regulation of risk mitigation by insurers, arguing that at present these activities "are not properly incentivised ... sometimes even perverse incentives are given to insurers".

An example