Lloyd’s blasts “red herrings” of collateral reform

Lloyd’s has accused US opponents to reinsurance reform of diverting attempts to reduce the 100% collateral requirements on foreign reinsurers with a series of “red herrings”. Earlier this year it looked as though the National Association of Insurance Commissioners (NAIC) was ready to reduce the 100% collateral requirement on foreign reinsurers of US risks, and set a sliding scale based on financial strength ratings that would also apply to US reinsurers. However, a document published in September said collateral requirements would only apply to US reinsurers with a poor financial strength rating.