Study on Reinsurance Brokers′ Credit Risks

With the development of reinsurance business in the global market,reinsurance brokers′ number is increasing.They act as intermediaries between insurance companies to work on broad activities.All kinds of services that are provided by the reinsurance brokers give insurance companies a lot of convenience to build reinsurance relationship.However,depending on reinsurance brokers to arrange reinsurance will lead to credit risks.The reinsurance brokers′credit risks will affect the financial stability of insurance and reinsurance companies,sometimes will lead to bankruptcy directly.This paper analyzes the causes of reinsurance brokers′ credit risks and discusses the possible effect on the insurance and reinsurance companies,then puts forward some relevant advice from three aspects such as market permission,market conduct controlling and financial requirements.