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Proposed reinsurance regulations to challenge insurers: Fitch

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Fitch Ratings Ltd. has said that new reinsurance regulations proposed by Indonesia's Financial Services Authority would increase challenges for the country's reinsurance industry, Asia Insurance Review reports.

As per the proposed regulations, insurers in the country must reinsure their cargo, motor and a few other businesses with domestic reinsurers. This plan, which is likely to decrease the outflow of reinsurance business to foreign markets, could challenge the domestic reinsurance sector, Fitch said.

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