US must consolidate regulation at federal level

The current alien reinsurer requirements are “inefficient” said Lloyd’s chief executive Nick Prettejohn during a debate on the role of government and only serve to raise the costs of cover to buyers. Mr Prettejohn used the stand to advance the London market’s argument against US regulations that require foreign, or alien, reinsurers to hold 100% of liabilities in cash or letters of credit. Mr Prettejohn said there is US$13bn tied up to meet these requirements that as a result cannot be used to settle claims.