One step forward, two steps back

For years the NAIC has overseen the lively debate over collateral charges on alien reinsurers – but could the long-running saga over reform be taken out of its control? Lawrence H. Mirel, a partner at US law firm Wiley Rein LLP, returns to IR&A to comment on all the latest developments with his head in his hands!

Last year on these pages I optimistically predicted that, after 10 years of debate, the US National Association of Insurance Commissioners (NAIC) finally appeared ready to adopt changes in the current US rules that require non-admitted (not licensed in the US) reinsurers to post 100% collateral on US risks. The reform proposal was moving steadily through the cumbersome NAIC system and a final vote was expected at the winter meeting in Houston, Texas, on December 1, 2007.