NAIC Reinsurance Task Force Considers Modernizing Reinsurance Regulation

This blog serves as an update to our June 7 and September 12 postings. 

 

Last week, we attended the Fall NAIC meeting in Washington D.C.  During the meeting, the Reinsurance (E) Task Force discussed a proposal to modernize current reinsurance regulation.  The Proposal called for the creation of a new Reinsurance Supervision Review Department to evaluate which foreign regulatory regimes are “functionally equivalent” to the U.S. – a process that may lead to mutual recognition between domestic and foreign jurisdictions.  The Task Force contemplated a single U.S. regulator system, under which authorization in one jurisdiction would give U.S. reinsurers access to the entire domestic market.  Finally, the Task Force discussed a single point of entry certification process that would allow non-U.S. reinsurers from certain countries to enter the U.S. reinsurance market through a single point of entry. 

 

The Task Force is accepting comments until October 19, 2007, and will hold an interim meeting in November to discuss the proposal further.

 

We will continue to monitor these developments and provide updates at InsureReinsure.com.