NAIC Logo

CIPR Logo

News Release

     HOME | NEWSROOM

NAIC on Facebook

NAIC on Twitter

NAIC Linked In

NAIC News Feed (RSS)

FOR IMMEDIATE RELEASE

QUALIFIED JURISDICTIONS SET TO EXPAND

WASHINGTON, D.C. (Nov. 12, 2014) -The National Association of Insurance Commissioners (NAIC) today announced that five international reinsurance supervisory authorities have been recommended by the NAIC's Qualified Jurisdiction (E) Working Group for approval as Qualified Jurisdictions under the Process for Developing and Maintaining the NAIC List of Qualified Jurisdictions. Recommendations include the Bermuda Monetary Authority (BMA); the German Federal Financial Supervisory Authority (BaFin); the French Autorite de Controle Prudentiel et de Resolution (ACPR); the Central Bank of Ireland (Central Bank); and the United Kingdom's Prudential Regulation Authority of the Bank of England (PRA).

If approved by the full NAIC membership, the jurisdictions would be placed on the NAIC List of Qualified Jurisdictions effective Jan. 1, 2015. Adopted by the NAIC in August 2013, the process was developed to evaluate the reinsurance supervisory systems of non-U.S. jurisdictions for reinsurance collateral reduction purposes. Reinsurers licensed and domiciled in these five jurisdictions are eligible to be certified for reduced reinsurance collateral requirements under the NAIC's Credit for Reinsurance Model Law.

"The timely evaluation of these jurisdictions represents another important step forward in implementing reinsurance modernization by the states," said John M. Huff, NAIC Reinsurance Task Force Chair and Director of the Missouri Department of Insurance, Financial Institutions and Professional Registration.

To date, 23 states have adopted reinsurance collateral legislation reform, which represents approximately 60 percent of the primary insurance premium in the U.S. There is a goal to add five more states in 2015, which would bring the total to more than 80 percent of the premium.

"Reinsurance collateral reform continues to play a prominent role in discussions with federal and international authorities. This move toward adding jurisdictions enhances the NAIC's position on this issue," said Adam Hamm, NAIC President and North Dakota Insurance Commissioner. "We appreciate the cooperative efforts of these five authorities in working with state regulators."

The recommendations will be posted for a two-week public comment period and then submitted to the Reinsurance (E) Task Force for review. Upon approval by the Task Force, the recommendations will be submitted to the NAIC Executive (EX) Committee and NAIC Plenary for a vote prior to the end of the year. Once approved, a Qualified Jurisdiction is subject to re-evaluation every five years, unless there is a material change in circumstances. The Qualified Jurisdiction Working Group also is currently evaluating the Swiss Financial Market Supervisory Authority (FINMA) and the Financial Services Agency of Japan (FSA), and expects to complete these reviews before the end of the year for consideration by the NAIC.

The NAIC posted a public notice on its website with respect to the recommendations. Interested parties may submit comments regarding the NAIC's consideration of these jurisdictions by the close of business on Nov. 26, 2014. Comments should be submitted to Daniel Schelp (dschelp@naic.org).

Click HERE for more information on the Reinsurance Task Force and the NAIC List of Qualified Jurisdictions.
   

About the NAIC

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.

 

Insure U Get Smart About Insurance

Contacts

 

Communications Division

news@naic.org

 

Scott Holeman

Communications Director

 

Jeremy Wilkinson

Sr. Electronic Communications

Manager

 

Miun Gleeson

Sr. Communications Specialist

 

Erin Yang

Media Strategist

 

Katherine Jones

Communications Specialist

 

 

Visit the NEWSROOM for media resources, archived releases and alerts

 

Join Our E-mail List to receive the latest news releases and other information from the NAIC Communications Division.

 

 


    [ NAIC Web Site | State Insurance Department Sites | Copyright & Reprint Info | Privacy Statement ]

©2014 National Association of Insurance Commissioners. All rights reserved.