EXIM to expand reinsurance risk transfer pilot programme

The Export-Import Bank of the US (EXIM) has decided to expand its reinsurance risk transfer pilot programme to the private sector.

As part of its work to support long-term EXIM reauthorisation legislation in 2019, the Reinsurance Association of America (RAA) worked with EXIM officials, Members of Congress and other industry stakeholders to encourage EXIM to use its underlying statutory authority to expand its risk transfer pilot programme.

Government risk transfer programs are fundamental in helping to protect taxpayers from the financial risk in these programmes. EXIM recently published a notice requesting proposals for a “No Cost to the Government, Reinsurance Services Contract.”

Frank Nutter, president of the Reinsurance Association of America, said: “The RAA has long worked with various government agencies, including the National Flood Insurance Program (NFIP), the Export-Import Bank of the U.S. (EXIM), and government-sponsored enterprises (GSEs), including Fannie Mae and Freddie Mac) to consider transferring risk to the private sector. The RAA applauds EXIM’s decision to further expand their reinsurance risk transfer program to the private sector.

"Risk transfer programs improve Federal program risk analysis and management, while easing the financial burden for risk now borne by the Federal government and ultimately, the American taxpayer.”