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Canada's Office of the Superintendent of Financial Institutions has said that it is probing the growing practice among property/casualty insurers of reinsuring commercial risks overseas, often through unregistered affiliates, reported Financial Post.
OSFI said that it is "assessing the effectiveness of these reinsurance practices" to "ensure that Canadian policyholder protection remains in place." Reinsurance ceded to unregistered reinsurers increased roughly 30% between 2011 and 2014, relative to the total level of premiums written, said OSFI.