NAIC SEEKS TO MODERNISE US REINSURANCE REGULATION

The US National Association of Insurance Commissioners (NAIC) is drafting a proposal to modernise regulation of reinsurers by allowing single-state licensing of US reinsurers and mutual recognition of non-US reinsurance regulation, it said at the weekend. The NAIC has also proposed the development of a Reinsurance Supervision Review Department (RSRD). NAIC president and Alabama insurance commissioner Walter Bell said that the group was “encouraged by supervisory developments in non-US jurisdictions where robust regulation has recently been introduced”, particularly the European Union’s new reinsurance directive. The proposed RSRD would help evaluate how non-US jurisdictions apply regulatory oversight that is “functionally equivalent” to US regulation, which in turn would allow reinsurers in those jurisdictions to have access to the entire US market through a single port-of-entry state.