NAIC revisits collateral debate

US regulators are still showing interest in reviewing its collateral rules for non-authorised, and in particular European, reinsurers but when will the interest turn to action? IR&A looks at the recent developments and finds that while the EU expects its position to strengthen with the adoption of the Reinsurance Directive, the US is not so sure.

The ink is barely dry on the European Reinsurance Directive approved by the European Commission in November but the reinsurance industry is hoping that the new rules will strengthen its argument for the abolition of collateral requirements in the US. Although not the primary focus of the directive, recognition of the rules by US regulators was quickly identified as a potential bonus.