US collateral reform faces EU opposition

International reinsurers have lodged their opposition to proposed reforms in the US that will treat foreign reinsurers differently to US reinsurers. In response to the NAIC’s Reinsurance Task Force consultation on legislation that will enact the reinsurance regulatory modernization framework, Lloyd’s said the proposals are “a major improvement over the current system” but that reinsurers outside the US and subject to equivalent supervision in their home state should be treated in the same way as US reinsurers. “We must continue to object to the preferential treatment given to US domestic reinsurers.”