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London: Regulation - Players get closer.

Europe Intelligence Wire

| May 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Reinsurance)

Byline: Vic Wyman.

Ah yes, you remember that idea of cedants paying more the higher the rating of the reinsurer by rating agencies. The idea, often suggested wistfully by highly-rated reinsurers themselves, has been around a long time but has never taken root.

However, the hour may have come, suggests Rick Hudson, the group risk director of the UK-based insurer Royal & SunAlliance and president of the UK's Chartered Insurance Institute.

A rates-for-ratings approach would be impossible with syndicated Lloyd's slips which are subscribed to by differently-rated companies. However, Mr Hudson thinks the idea might fly ...

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