Pacific Life Re, the reinsurance arm of Pacific Life Re, welcomes the Japan Financial Services Agency’s (JFSA) proposed code amendments to the Comprehensive Code for Insurance Company Supervision as they promote the healthy development of asset-intensive reinsurance (AIR).
PL Re said: “While the final form of the guidance has not yet been determined, we welcome this regulatory development. We believe this is an important step and are expected to support the healthy and sustainable development of the AIR market and, in turn, the broader savings and retirement market in Japan.”
JFSA’s proposals address areas such as incorporating AIR-related stress scenarios into stress testing, improving monitoring and analysis of reinsurers and collateral assets, and strengthening governance frameworks that reflect AIR-related risks.
By promoting transparency, discipline and resilience, these initiatives aim to promote robust AIR practices across the industry.
After a period of substantial expansion, the Japanese AIR market is transitioning to a stage where AIR quality and its application responsibility are highly relevant.
This shift is expected to result in increased trading between insurers and reinsurers, with strong risk management practices and more sustainable long-term growth.
PL Re added: “PL Re plays an active role in the healthy growth of Japan’s AIR market by partnering with Japan’s leading life insurance companies and supporting them in achieving their strategic goals. Pacific Life is a mutual company with nearly 160 years of financial strength, stability and reliability. With the support of Pacific Life, we are committed to continuing to be a trusted long-term partner to the Japanese insurance industry.”