Reinsurance Task Force
Financial Condition (E) Committee

The mission of the Reinsurance (E) Task Force is to monitor and coordinate
reinsurance activities and areas of interest, which overlap to some extent the
charges of the International Insurance Issues (G) Committee.

2008 Charges

The mission of the Reinsurance (E) Task Force is to monitor and coordinate activities and areas of interest, which overlap to some extent the charges of other working groups, specifically the International Insurance Issues (G) Committee.

Provide a forum for consideration of reinsurance-related issues of public policy.
Consider the adequacy and appropriateness of currently applicable collateralization requirements regarding unauthorized reinsurers.
Monitor the activities of the Property and Casualty Reinsurance (C) Study Group for matters that should be considered by the Task Force.
Monitor the development of EU reinsurance standards and prepare a comparison of the final standards with US reinsurance regulatory law. Determine what changes would be necessary to harmonize the two systems.
Consider the design of a revised U.S. reinsurance regulatory framework.

Finite Reinsurance

The following items are exposed for comment. Please submit comments to the appropriate NAIC staff support contact by the deadline indicated.

Dec. 2, 2007
Reinsurance Regulatory Modernization Framework Proposal Memorandum

Nov. 8, 2007
Reinsurance Regulatory Modernization Framework Memorandum

Mutual Recognition
A new NAIC entity called the Reinsurance Supervision Review Department (RSRD) would be established. Assessing regulatory effectiveness through an “outcomes-oriented” approach, the RSRD would determine which non-U.S. jurisdictions are entitled to enter into mutual recognition agreements.

Single State U.S. Regulator – U.S. Reinsurers
To avoid inappropriate extraterritorial regulation, a domestic reinsurer may access the U.S. market upon certification by its state of domicile or another appropriate U.S. regulator. Uniform minimum standards would be established for a company to qualify for certification, and for a state to qualify to be recognized as a reinsurer’s single state regulator.

Single State U.S. Regulator – Non-U.S. Reinsurers
A non-U.S. reinsurer from an RSRD-approved jurisdictions could be certified to access the U.S. market through one jurisdiction, referred to as the reinsurer’s “port of entry.” Again, the process would be governed by uniform minimum standards.

Sept. 7, 2007
Draft Reinsurance Collateral Proposals: The Reinsurance Task Force would request any initial comments from members of the Task Force, interested regulators or interested parties to be sent in by Sept. 21, 2007 in order to allow for comments to be reviewed prior to the Task Force meeting on Sept. 29. As part of amending the U.S. reinsurance regulatory framework, U.S. insurance regulators are proposing to develop a system which would allow for the following:

Regulatory Equivalence - Mutual Recognition
Reinsurance Supervision Review Department (RSRD) would determine which jurisdictions are "functionally equivalent" to U.S. regulation.

Single State U.S. Regulator - U.S. Reinsurers Domestic reinsurers would submit to one jurisdiction in order to access the U.S. market (minimum criteria established to qualify for single state regulatory approach)
Port of Entry - Non-U.S. Reinsurers

Non-U.S. reinsurers from approved jurisdictions would be certified to access the U.S. market through one jurisdiction that has met certain criteria.

This reinsurance regulatory modernization proposal would provide a framework for mutual recognition between the U.S. and non-U.S. jurisdictions. The RSRD would establish principles concerning regulatory equivalence and there will also be minimum requirements that states would have to follow in order to be a port of entry for a non-U.S. reinsurer.

Comments Received