Credit crisis perceived to have marginal regulatory impact for insurers

Eighty-seven per cent of the 40 global (re)insurance CEOs surveyed by the Geneva Association expect a minor tightening of regulatory framework as a result of the credit crisis.This expectation would be based on the “spill-over” effect of anticipated major changes to banking regulation, the association said in a release.The International Association for the Study of Insurance Economics, or “The Geneva Association” for short, is a world organization formed by a maximum of 80 chief executive officers (CEOs) from insurance companies around the world. The association’s mandate is to research the growing importance of worldwide insurance activities in all sectors of the economy.When asked about the insurance industry’s overall reputation, 52% of respondents expected potentially minor reputational damage arising from the credit crisis. The other 48% believed there would be no impact whatsoever, the survey found.With regard to the convergence between insurance and the capital markets (through the securitization of insurance risks), 52% of the CEOs do not anticipate any impact arising from the credit crisis. Twenty per cent expect the pace of convergence to slow, whereas 28% believe it will accelerate in the wake of the credit crisis, the release continues. The latter half of the survey was devoted to the primary risks over the next 12 months facing both the industry as a whole and the CEOs’ respective organizations.On top of the list of concerns is an economic slowdown as a result of the credit crisis, followed by continuing financial market volatility, the association said.The third most frequently mentioned risk is insurance regulators overreacting to the credit crisis.