A Defense of Reinsurers From Two Industry Groups "With Lax Regulation, a Risky Industry Flourishes Offshore," by Steven M. Davidoff (Deal Professor column, Sept. 5), doesn't fairly reflect how the reinsurance industry works and how it is regulated. The International Association of Insurers Supervisors recently issued a paper stating that reinsurers do not present systemic risk, largely because of financial transparency and enterprise risk management efforts. Despite over $100 billion of insured catastrophe losses globally in 2011, reinsurance capital is at record levels. This capital is largely conservatively invested in bonds and related investments. Reinsurers also do not have the leverage issues that brought the banks to their knees. Reinsurers withstood the recent financial crisis better than most other financial sectors. Reinsurers are on the forefront of risk management. Regulators and credit rating agencies concerned about credit risk apply stringent financial measures to reinsurers. There is nothing "murky" here. FRANK NUTTER President Reinsurance Association of America Washington, Sept. Your article's concerns about Bermuda's global reinsurers are appropriate to our grandfathers" insurance regulators, not today's. Bermuda is home to two of Standard & Poor's top 10 reinsurers. Bermuda's global reinsurers are subject to strong and comprehensive regulation, including risk-based capital, stress testing, enterprise risk management oversight, corporate governance, financial reporting and audited financial statements. If a global reinsurer is looking for lax regulation or no transparency, it should look elsewhere. Bermuda's global reinsurers have an excellent record for claims payment, having paid $2.5 billion in losses for the terrorist attacks on the World Trade Center in 2001 and $17 billion for losses from Hurricanes Katrina, Rita and Wilma in 2005. In addition to supporting some 15,000 American employees, the Bermuda global reinsurers make markets more competitive, increasing supply and reducing costs, thereby benefiting American consumers. BRADLEY KADING President, Association of Bermuda Insurers and Reinsurers Washington, Sept.