US reinsurance reforms progress to Congress

New legislation in the US promising to reduce collateral requirements for foreign reinsurers accepting risks in the country has been put before Congress. The Reinsurance Regulatory Modernization Act has been developed by the National Association of Insurance Commissioners (NAIC) after years of lobbying from reinsurers in the UK and Europe for change to the 100% collateral requirement on their gross premiums written in the US. The NAIC is now seeking congressional sponsors to push through the reform, which it said is “a more comprehensive alternative to the reinsurance provisions of the recently passed Nonadmitted and Reinsurance Reform Act”.