Federal insurance office may be able to overrule states
The US legislative clampdown on financial services companies yesterday included setting up a federal insurance office in the Treasury Department to negotiate international insurance treaties, Bloomberg reports
Reinsurers based in Europe, including Ace, Lloyd’s of London and Swiss Re, want the federal regulator to be able to override state rules that force the companies to post more collateral than US based competitors.
“We believe that collateral should be based on the financial strength of a reinsurer, not its place of domicile,” Ace CEO Evan Greenberg said.
