Insurers call for competition in California

North America

Primary insurers in California are promoting a bill to ensure that reinsurance capacity is available at competitive rates. The bill, AB 2400, which is being sponsored by the Association of California Insurance Companies, was recently heard by the Californian State Assembly. The main aim of the bill is to give primary insurers in California the same kind of access to international reinsurance capacity as other insurers in other US states. The bill is looking to amend several provisions of existing California law bring it in line with the National Association of Insurance Commissioners’ (NAIC) model reinsurance statute. Every other other US state already conforms with the NAIC model law.