Collateralization Debate Heats UpInternational Editor

The increasing importance of reinsurance recoverables is heating up the controversy over whether U.S. reinsurers should be compelled to provide 100 percent collateralization for their exposures to ceding companies, according to Standard & Poors and industry observers.

Indeed, Maurice Greenberg, chairman and CEO of American International Group, raised the temperature a few degrees when in April he demanded collateral of his insurers, both alien and domestic companies.

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