NAIC backtracks on collateral

New proposal rejects plan to impose same collateral requirements on US and foreign reinsurers; London market “profoundly disappointed”

London market and European insurers have been dealt a setback in the campaign against US collateral requirements on non-US insurers. Hopes of a fairer system proposed by the Reinsurance Task Force of the National Association of Commissioners (NAIC) last year that would apply the same charges to US domestic insurers as foreign reinsurers based on financial strength ratings and reduce the current 100% requirement for the financially strongest reinsurers have been dashed by a new paper put forward by an NAIC subgroup.