NAIC chairman celebrates ‘friendship’ with BMA
The Bermuda Monetary Authority and the US National Association of Insurance Commissioners have a “great friendly relationship”, according to NAIC chairman Andrew Mais.
Mais, also Insurance Commissioner of Connecticut, was one of a group of state insurance commissioners attending the Bermuda Risk Summit.
He said Bermuda was an important ally as NAIC moved towards improved insurance regulation and ensured that there was sufficient insurance capacity to meet the needs of the market.
He said it was important US insurance regulators were comfortable with the Bermuda regulatory structure.
He said friends also had to be able to "share unpleasant truths” when necessary, although he said this was “very rare”.
“We have confidence in the Bermuda regulatory system and Bermuda regulators,” he said. “They listen to any concerns we may have.”
Gerald Gukandi, the director of insurance supervision for the BMA, said the BMA and the US shared the same values evolving around solutions and reciprocity.
Bermuda has reciprocal and qualified jurisdiction status with the NAIC.
Mais said the NAIC’s strategic priorities for 2024 including narrowing the protection gap and also examining the pros and cons of artificial intelligence.
On climate risk, he said he would like to see “a softer market”, adding: “The only way to do that is to look at improved insurer solvency.”
He said making insurance affected by climate change more affordable and accessible could only happen through collaboration.
He said there could not be “artificial caps placed on insurance” and the NAIC Was looking to form a national climate resilience strategy which would see better construction and more resilience.
“As insurance regulators we need to encourage it where we can to reduce the losses we know will happen. That will enable insurers to reduce cost,” he said.
Elizabeth Dwyer, the director of Business Regulation for Rhode Island, said the NAIC was also looking more closed at life reinsurers owned by private equity firms.
She emphasised that the NAIC was looking for comments on such ownership and on an updated framework.
We are not trying to get to a point where the NAIC regulates who can own insurance companies, but to understand better how it works.
Private equity owners of long-term reinsurers have come under more scrutiny over concern about transparency and about investments in illiquid securities.
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