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
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 (firstname.lastname@example.org).
for more information on the Reinsurance Task Force and the NAIC List of