A well-functioning securitisation market is vital to supporting economic growth across the EU. By enabling banks to transfer risk and free up capital, securitisisation helps unlock increased lending to households, SMEs, and long-term investment projects. Insurers play a long-established and well-regulated role in this market, particularly through unfunded credit protection in synthetic securitisations.

As the EU reviews its securitisation framework, this joint paper from Insurance Ireland and the Association of Bermuda Insurers and Reinsurers (ABIR) highlights the need for a proportionate, workable approach that fully recognises insurers’ contribution. While recent proposals acknowledge insurers’ role in STS synthetic securitisations, certain restrictions risk excluding well-regulated insurers, reducing competition, and increasing concentration risk. The paper sets out targeted recommendations to ensure the framework supports financial stability, market resilience, and sustainable economic growth in the EU.

Joint Industry Position Insurance Ireland & Association of Bermuda Insurers and Reinsurers (ABIR)