Insurance Europe’s Reinsurance Advisory Board (RAB) has written to the U.S National Association of Insurance Commissioners (NAIC) to express concern about NAIC’s draft implementation plans for the bilateral agreement on re/insurance prudential measures.
The agreement eliminates the requirement to post collateral placed on EU re/insurers writing business in the U.S.
However, RAB states that the current draft NAIC proposals do not appropriately reflect the bilateral agreement.
They foresee a more limited scope of application of zero collateral than in the agreement and give a significant amount of discretion to U.S state supervisors in areas that were stipulated in the agreement, such as all EU member states receiving all agreed benefits.
Furthermore, European reinsurers have called for an immediate start to the phased implementation of reduced collateral, in line with the agreement.
RAB says the NAIC Reinsurance Task Force and individual states must take the necessary steps to ensure appropriate and swift implementation of the provisions of the bilateral agreement, respecting the timelines agreed between the EU and the U.S.
RAB is a specialist representative body for Europe’s reinsurance industry, represented at Chief Executive Officer level by Gen Re, Hannover Re, Lloyd’s of London, Munich Re, Partner Re, Scor, and Swiss Re.
