This is a reprint of an article originally published on 5 June 2023 as part of our publication "Securitisation markets and regulation: choosing different paths?", accessible here.

Following the 2008 financial crisis, European (re)insurance companies cut back on their securitisation investments. This effect was aggravated by the introduction of Solvency II in 2016 which, in effect, penalised insurers’ investments in securitisation. European insurers have yet to fully re-enter the securitisation markets.

In this article, we consider the outlook for (re)insurers’ participation in ABS markets in the coming years in light of proposed reforms to EU and UK regulatory regimes and the expected impact on (re)insurers’ investment behaviour.