The International Association of Insurance Supervisors (IAIS) released the Global Reinsurance Market Report 2008 (report). The report provides an overview of the financial condition of reinsurers, assesses market stability and linkages within the reinsurance sector, and the impact of the current turmoil of the reinsurance sector. The report is based on data submitted by the world’s largest reinsurers. The report has tended to provide general reinsurance-related data and analysis and market trends and developments, and this year includes coverage of potential vulnerabilities from a systemic perspective.

Three findings were particularly important. First, in 2007 reinsurers enjoyed a relatively calm environment, and posted high levels of profit. Second the use of credit risk transfer devices grew rapidly, despite financial turmoil, but reinsurers participated in this market with less enthusiasm than their peers. Third, reinsurers suffered minimal losses in the lead up and through the initial phases of the financial crisis.