The future regulation of reinsurance in the USA has taken a significant step towards reform and modernisation. At this week’s NAIC meeting the final vote on a new framework was taken and unanimously passed. After many years of work by Regulators and industry proponents, this vote was both dramatic and emphatic.
As we have reported before, the plan is to implement the new framework by Federal enabling legislation. This is clearly the most efficient mechanism and supported by the NAIC but by no means certain in the short term. The state Regulators recognise the need for change and are keen to see their framework implemented in the midst of growing pressure or Federal oversight of reinsurance.
This week’s vote is the end of a very long campaign and we hope that progress through the US Congress is much quicker. The NAIC framework is not the perfect solution but incorporates a number of important concepts which were unimaginable five years ago.
The key for our members is to be able to operate in an efficient but robust regulatory environment. A single regulatory point of contact which is empowered to recognise non-US jurisdictions must be integral to the implementation of the new regime.
Comments