Regulators have announced they are to increase their scrutiny of reinsurers, as concerns were raised about the sector's health.
Following a series of worrying profits results, the Organisation for Economic Co-operation and Development (OECD) announced that its member states will set up an information exchange act as an early warning system.
The exchange will provide information on reinsurers in insolvency or involved in fraud.
The move follows the OECD's concern that reinsurers operate in a market "where their activities are often not subject to prudential oversight."
Munich Re posted a quarterly loss in August due to £945m write-downs.
The information exchange is part of an OECD drive to ensure the maintenance of the market.
Director of S&P Rob Jones said: "Reinsurers are regulated in the UK and US, but in Europe they are lightly regulated."
