NAIC Task Force Seeks Comments on Reinsurance Regulatory Modernization Proposal
Sep 10, 2007
National Association of Insurance Commissioners (“NAIC”) Senior Reinsurance Manager, Bryan Fuller, issued a request for comment (below) from NAIC Reinsurance Task Force members and interested parties, regardingÂ the attached reinsurance regulatory modernization proposal.
The proposal would provide a framework for mutual recognition between the U.S. and non-U.S. jurisdictions. The Reinsurance Supervision Review Department (“RSRD”) would establish principles concerning regulatory equivalence and would require statesÂ to follow minimum requirements in order to be a port of entry for a non-U.S. reinsurer.
All comments should be forwarded by September 21, 2007, in order to allow for review prior to the next Task Force meeting on September 29, 2007.Â Mr. Fuller’s contact information is below.
Should you have any comments or questions regarding this information, please feel freeÂ to contact this office.
To:Â Members and Interested Parties to the Reinsurance (E) Task Force
I would like to thank the U.S. insurance regulators that have worked diligently on the Reinsurance Collateral Study Group.
While we realize that there is not much time before the 2007 NAIC Fall National Meeting in Washington, D.C., the Task Force would request any initial comments from members of the Task Force, interested regulators or interested parties to be sent in by Sept. 21, 2007 in order to allow for comments to be reviewed prior to the Task Force meeting on Sept. 29.
As part of amending the U.S. reinsurance regulatory framework, U.S. insurance regulators are proposing to develop a system which would allow for the following:
Regulatory Equivalence – Mutual Recognition
- Reinsurance Supervision Review Department (RSRD) would determine which jurisdictions are “functionally equivalent” to U.S. regulation.
Single State U.S. Regulator – U.S. Reinsurers
- Domestic reinsurers would submit to one jurisdiction in order to access the U.S. market (minimum criteria established to qualify for single state regulatory approach)
Port of Entry – Non-U.S. Reinsurers
- Non-U.S. reinsurers from approved jurisdictions would be certified to access the U.S. market through one jurisdiction that has met certain criteria.
This reinsurance regulatory modernization proposal would provide a framework for mutual recognition between the U.S. and non-U.S. jurisdictions. The RSRD would establish principles concerning regulatory equivalence and there will also be minimum requirements that states would have to follow in order to be a port of entry for a
Please call or e-mail me should you have any questions.
Bryan J. Fuller, CPCU, ARe
Senior Reinsurance Manager
National Association of Insurance Commissioners
2301 McGee, Suite 800
Kansas City, MO 64108-2604
Tel. (816) 783-8139
Fax. (816) 460-7824