Bermuda has been recognised by the National Association of Insurance Commissioners in the US as a Conditional Qualified Jursidiction. Recognition will help to reduce the collateral requirements of Bermuda reinsurers.
Bermuda will enjoy lower collateral requirements from January 1, 2014, alongside Germany, Switzerland and the United Kingdom.
Under the Process for Developing and Maintaining the NAIC List of Qualified Jurisdictions, whichwas developed to evaluate the reinsurance supervisory systems of non-US jurisdictions for reinsurance collateral reduction purposes, Bermuda reinsurers now benefit from a more even playing field in their operations in the US.
Commenting on the move, Michael Consedine, chair of the NAIC reinsurance task force and Pennsylvania insurance commissioner said: "The approval of these four jurisdictions is an important step forward as the states implement reinsurance modernization. It was the NAIC's goal to complete the expedited review process prior to the end of the year and permit states to begin certifying reinsurers for collateral reduction purposes."
"Reinsurance collateral reform continues to play a prominent role in international discussions, as demonstrated in the EU-US Dialogue," said Jim Donelon, NAIC president and Louisiana Insurance Commissioner. "The NAIC greatly appreciates the cooperative efforts of the BMA, BaFin, FINMA and PRA in helping the states move forward in our efforts."
NAIC, collateral, reinsurance, US, regulation