NAIC Reinsurance Task Force Meets Following Atlanta Financial Summit

 

Attached is the Agenda for the National Association of Insurance Commissioners (“NAIC”) Reinsurance (E) Task Force Interim Meeting that takes place November 7-8, 2007, immediately following the NAIC Third Annual Financial Summit in Atlanta. 

The proposals, with general and specific comments are below, along with comments received during the review period.  The proposals and comments will be reviewed at today’s meeting. 

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 non-U.S. reinsurer.

Comments Received

• ABI Comments
• ABIR Comments
• AIA Comments
• CEA Comments
• Delaware Comments
• European Commission Comments
• Hanover Re Comments
• Iowa Comments
• IP Comments
• IP Affiliate Comments
• IUA Comments
• Kendall Freeman
• National Conference of Insurance Guaranty Funds
• National Conference of Insurance Guaranty Funds 2
• Pennsylvania Comments
• PCI Comments 1
• PCI Comments 2
• PCI Comments 3
• RAA Comments
• Wiley Rein Comments

The mission of the Reinsurance (E) Task Force is to monitor and coordinate reinsurance activities and areas of interest, which overlap to some extent the charges of the International Insurance Issues (G) Committee.

2007 Reinsurance Task Force Charges

• Provide a forum for consideration of reinsurance-related issues of public policy
• Consider the adequacy and appropriateness of currently applicable collateralization requirements regarding unauthorized reinsurers.
• Monitor the activities of the Property and Casualty Reinsurance (C) Study Group for matters that should be considered by the Task Force.
• Monitor the development of EU reinsurance standards and prepare a comparison of the final standards with US reinsurance regulatory law. Determine what changes would be necessary to harmonize the two systems.
• Utilize the REO Proposal as a basis to further develop a risk-based evaluation process specifically for purposes of collateral recalibration.
• Consider the design of a revised U.S. reinsurance regulatory framework.

 

Should you have any questions or comments, please do not hesitate to contact this office.