Reported New York Sanctions Probe Highlights Opacity of Reinsurance Industry, Say Consultants

By Brian Monroe

New U.S. regulations and a reported sanctions probe by New York officials are increasing pressure on the reinsurance sector, an industry where knowing your customer can prove difficult, say consultants. Last week, The Wall Street Journal reported that the New York State Department of Financial Services (NYSDFS) has asked 20 non-U.S. companies whether they've insured entities tied to the government of Iran. Officials at the state agency believe that at least three firms have done so, the newspaper said, citing people with knowledge of the investigation. The news comes as reinsurers and the financial institutions they bank with have had...