The National Association of Insurance Commissioners (NAIC) is considering lowering the amount of money Company Market reinsurers must lodge in America.
The International Underwriting Association (I ...
The National Association of Insurance Commissioners (NAIC) is considering lowering the amount of money Company Market reinsurers must lodge in America.
The International Underwriting Association (IUA) wrote to commissioner John Oxendine, chairman of the NAIC reinsurance taskforce in October. It called for a 50% concession on the cash non-US reinsurance members must deposit as a guarantee against payment of US reinsurance claims.
The letter followed the NAIC's decision to grant a 40% relief to Lloyd's for losses arising from 11 September.
In November, IUA chairman Stephen Cane said: "It is very important to get the same kind of treatment as Lloyd's. Company Market members are currently having to fund at 100%, so they are tying up funds that could be used elsewhere."
Last month, Cane met with Oxendine in London to discuss the possibility of a long-term concession. It was agreed the matter would be timetabled for review in late 2002.
But the trade association has been told the issue will be discussed at the NAIC's March meeting, or earlier.
IUA spokeswoman Andrea Pound said: "US regulators have conceded incidents such as the World Trade Centre losses demonstrate the onerous nature of the regulations. Consequently they have appeared to consider changes earlier in 2002."
