Foreign reinsurers gain influence in collateral debate

The National Association of Insurance Commissioners (NAIC) has promised to review the collateral requirements placed on foreign reinsurers accepting business in the US by the end of this year and recent figures from the Reinsurance Association of America (RAA) reveal just how significant the issue is for alien reinsurers. According to RAA statistics, unaffiliated foreign reinsurers accounted for almost 52% of reinsurance premiums ceded by US firms last year, up from 48% in 2005. The data will be used by both sides of the collateral debate to further their cause.