Ahead of the upcoming round of negotiations for a Trade in International Services Agreement (TiSA), that will take place from 29 November to 4 December 2015, Brad Smith, chair of GFIA's trade working group said:
"GFIA would like to reiterate its strong support for a new and ambitious TiSA. This agreement should be consistent with the objectives of the General Agreement of Trade in Services rules,and aim to include a large and diverse membership, including large and emerging economies.
"GFIA also urges the nations involved to include commitments that are specific to the insurance and reinsurance sector. Among others, TiSA should provide for full, open market access and national treatment for admitted companies and promote access for insurers without commercial presence when the risk is inherently global, such as risks covered by reinsurance and marine, aviation and transport insurance. At the same time, TiSA should support development of the global reinsurance system and prohibit forced localisation of reinsurance in any form or measures that discriminate against the provision of cross-border reinsurance by financially strong, well regulated, foreign reinsurers, taking into account the fundamental prudential benefit that global reinsurance provides for risk diversification.
"Global (re)insurers promote financial security by assisting individuals and businesses to identify, reduce and manage their risks and then providing private compensation for loss when it occurs. They can absorb such major losses and create value by spreading the risk globally, because of their unique diversification of risk and their long term investments. This diversification can arise from writing different lines of business, but also from (re)insuring different geographical locations.
"An open reinsurance market creates opportunities for risk diversification so that ceding insurers do not end up with reinsurance recoverable concentrations from a small number of reinsurers. This makes insurance markets more competitive and financially strong and helps provide price and product advantages and choices to consumers.”