The US National Association of Insurance Commissioners (NAIC)
held its Fall 2014 National Meeting in Washington, DC on November
16-19, 2014. Set forth below are some highlights from the
meeting:
Reinsurance
The NAIC's Reinsurance Task Force (RTF) and other NAIC
groups continued their work on implementing and further developing
the regulatory framework for highly rated non-US reinsurers to
provide reinsurance to US ceding companies without having to post
100% collateral. Under the 2011 revisions to the NAIC Credit for
Reinsurance Model Law and Regulation, non-US reinsurers from
"qualified jurisdictions" can apply to become
certified. A "certified reinsurer" can be eligible to
post less than 100% collateral for reinsurance assumed from US
ceding companies (75%, 50%, 20%, 10% or 0% collateral) depending on
the reinsurer's financial strength ratings from recognized
agencies and satisfaction of other criteria.
