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As previously discussed here, Brazilian law previously imposed a 10% limit on total annual premiums that a local insurer could cede to an occasional foreign reinsurer.  On April 27, 2009, however, the Superintendencia de Seguros Privados (SUSEP), the Brazilian insurance regulator, relaxed that limitation significantly, but only as to two lines of business. …
Read More Brazil Raises Cession Limit to Occasional Foreign Reinsurers for Surety and Petroleum Lines

On April 28, 2009, Democratic Representative Barney Frank, chairman of the U.S. House of Financial Services Committee, told the Reuters Global Financial Regulation Summit in Washington that a congressional panel will examine whether insurance companies should be regulated under an optional federal charter, which would give insurers a choice between state or federal regulation. …
Read More House Panel Hearings on Optional Federal Charter

United States Senator Bill Nelson (D-FL) introduced a bill last week to provide a guarantee for the Florida Hurricane Catastrophe Fund from the Federal Reserve.  The legislation would also provide federal guarantees for the catastrophe funds in Texas and Louisiana and the earthquake insurance pool in California (the “Cat Funds”). 

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Read More Senate Bill Seeks Federal Backstop for Four States’ Catastrophe Funds

As reported here, here, and here, Florida legislators and insurance regulators actively are seeking to shed some of the state’s hurricane risk and to strengthen the financial condition of the Florida Hurricane Catastrophe Fund (the “Fund”).  As reported here, the Fund, which was established after Hurricane Andrew, provides reinsurance coverage for residential property insurers in Florida in the event of major windstorm events. 

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Read More Florida Hurricane Catastrophe Fund Reforms May Impact Demand for Private Reinsurance Coverage

The FSA has published Policy Statement 09/7 (the PS) in connection with its review of the limits under the Financial Services Compensation Scheme (FSCS). The PS addresses changes to FSCS limits in connection with insurance, insurance mediation, investments and home finance mediation and home finance lending and administration which will come into effect on 1 January 2010. …
Read More FSA to Simplify FSCS Compensation Rules

For the first time, the ABI has on 21 April published guidance governing the trade credit insurance industry. The guidance, which is not legally binding, is published in the form of a Statement of Principles outlining how trade credit insurers operate and what policyholders can expect. …
Read More UK: The Association of British Insurers (the ABI) Publishes a Statement of Principles on Trade Credit Insurance

On April 20, 2009, the Texas State Senate issued a press release announcing approval of Senate Bill 1007 (“SB 1007” or the “Bill”) authorizing continued operation of the Texas Department of Insurance (“TDI”) and slightly reforming certain TDI operations. …
Read More Texas Senate Approves Bill Authorizing Continued Operation of the Texas Department of Insurance

As previously reported here, Representatives Melissa Bean, D-Ill., and Ed Royce, R-Calif., introduced the National Insurance Consumer Protection Act of 2009 (“H.R. 1880”) in the House of Representatives on April 2, 2009.  H.R. 1880 would establish an optional, national system of regulation and supervision for insurers and producers. …
Read More UPDATE: NAIC Releases Statement Opposing The National Insurance Consumer Protection Act of 2009

On April 20, 2009, Commissioner Sullivan (the “Commissioner”) of the Connecticut Insurance Department (the “Department”) released Bulletin IC–22 (the “Bulletin”), which serves as a reminder to chief executive officers of all insurance companies licensed in the State of Connecticut of their responsibility to not harm the public’s confidence in the insurance industry and to not engage in unfair trade practices. …
Read More Connecticut Insurance Commissioner Reminds Industry Members to Not Speak Poorly About Their Competitors

In light of the current financial crisis, the CEA, the European Insurance and Reinsurance federation, has stressed the importance of reforming the regulation and supervision of the financial services industry. The CEA suggested that the crisis suffered within the financial markets has had a lesser impact on the insurance industry and, for that reason, most insurers do not require the same state assistance that has been provided to the banking industry. It also warned against over-regulation. …
Read More EU: CEA Responds to EC Consultation on Financial Services Supervision