As outlined in our June 7, 2007 blog entry, the National Association of Insurance Commissioners (NAIC) is considering modernizing reinsurance regulation, including collateral requirements of nonadmitted reinsurers.  Currently nonadmitted reinsurers are required to post collateral sufficient to cover 100% of U.S. risks written. Under the proposed regime, this blanket requirement would no longer apply. Instead, a new Reinsurance Supervision Review Department would assess whether insurance regulations overseas are comparable to domestic regulation. The results of the assessment would be used as a factor in determining a nonadmitted reinsurer’s collateral obligations. The NAIC is seeking comments on this proposal by September 21, 2007 (prior to the Fall meeting).