New York--Finite reinsurance has drawn regulatory scrutiny in recent months, but state regulators in the past have found such transaction "useful" and were "complicit" when insurers created them, according to experts speaking at an industry conference.
The Reinsurance Association of America defines a finite arrangement as "a highly structured reinsurance contract where the structured elements reduce the amount of risk assumed by the reinsurers to the point that it may not meet the accounting requirements of risk transfer."
Speaking at a panel discussion during Standard & Poor's annual insurance conference, Peter Porrino, global director of insurance industry services at Ernst & Young, said "at times regulators found these contracts useful."
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