A row has erupted between European and American reinsurers over accounting and regulation standards.
A row has erupted between European and American reinsurers over accounting and regulation standards.
The International Underwriting Association (IUA) has rebuffed allegations that members such as AXA face less stringent regulations than their US counterparts.
Last week six US trade bodies made the allegations in a joint letter to the US-based National Association of Insurance Commissioners (NAIC). The letter claimed that "solvency regulation regimes and accounting systems" were "less stringent" for non-American reinsurers.
They called on the NAIC to maintain strict requirements for foreign companies underwriting US business from Europe.
The IUA is lobbying against the regulations, which insist its members have to lodge money equivalent to 100% of any claims that have been made by their US customers.
The IUA wants the requirement to be reduced by up to 50% in the future. It claims that US reinsurers are not required to post money in the Europe for claims.
IUA chairman Stephen Cane has said: "We were surprised and concerned about your letter. The letter contains a number of inaccuracies and misconceptions."
