Bermuda, Japan and Switzerland have all been granted Reciprocal Jurisdiction status by The National Association of Insurance Commissioners (NAIC).
Reciprocal Jurisdiction is an elevated status introduced by the NAIC this year and is only attainable by first gaining the pre-requisite Qualified Jurisdiction status and recognising the US state regulatory system for group supervision and group capital.
The three countries’ inclusion as Reciprocal Jurisdictions means its re/insurers will be eligible for zero collateral relief, thereby operating under equal conditions as its counterparts from the EU and UK.
“The NAIC has a successful history of working with Bermuda, Japan and Switzerland as Qualified Jurisdictions,” said Eric A. Cioppa, NAIC President and Maine Insurance Superintendent.
“As U.S. ceding insurers and state regulators have a large degree of confidence in their supervision of reinsurers, they should receive similar treatment to reinsurers domiciled in Covered Agreement jurisdictions.”
Additionally, it has been confirmed that Bermuda has has been re-approved by the NAIC as a Qualified Jurisdiction.
The US standard-setting and regulatory support organisation first placed Bermuda on its list of qualified jurisdictions in 2015, ensuring that its domiciled re/insurers are eligible for reduced reinsurance collateral requirements.
“We are grateful that the United States decided in 2019 to introduce the Reciprocal Jurisdiction process to ensure a level playing field with the benefits arising from the United States/European Union and United States/United Kingdom Covered Agreements,” Craig Swan, Managing Director, Supervision.
“Bermuda’s approval as a Reciprocal Jurisdiction further cements the close economic relationship between our jurisdictions as Bermuda (re)insurers continue to play a vital role in supporting the US economy by providing the financial protection and support needed when there is a loss.”
We welcome this initiative and would like to thank the NAIC for approving Bermuda as a Reciprocal Jurisdiction,” Swan added.
