NAIC Reinsurance Task Force Prepares for February 2018 Public Hearing on EU Covered Agreement

Nov 28, 2017

The National Association of Insurance Commissioners (“NAIC”) is planning a February 2018 public hearing in either New York or Washington, D.C. that would specifically be devoted to soliciting feedback on the reinsurance aspects of the Bilateral Agreement Between the United States and European Union on Prudential Measures Regarding Insurance and Reinsurance (also known as the “Covered Agreement”).

Prior to the public hearing, the NAIC’s Reinsurance Task Force (“Task Force”) will be requesting written comments from state insurance regulators and members of the industry on issues relating to the Covered Agreement.

At the most recent Task Force meeting this past November 1, New York Executive Deputy Financial Services Superintendent Scott Fischer explained that ” . . . for all practical purposes, the Covered Agreement is in effect.”   It includes provisions related to group capital, group supervision and reinsurance, the latter which states will have 60 months during which to adopt reforms.  Otherwise, the Federal Insurance Office is authorized to pre-empt state laws that are determined to be inconsistent.

Meanwhile, European Union reinsurers will not be eligible for collateral elimination until a state has amended its credit for reinsurance laws accordingly.

To view the Task Force materials for its upcoming December 3 meeting at the NAIC 2017 Fall National Meeting in Hawaii, click here.

Task Force members, which include Florida Insurance Commissioner David Altmaier, will also consider a recommendation to approve the Kroll Bond Rating Agency as a Nationally Recognized Statistical Rating Organization for Certified Reinsurer Purposes.

Should you have any questions or comments, please contact Colodny Fass.

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