U.S. insurers have lined up against a new reinsurance collateral proposal that will treat all carriers the same regardless of their nation of domicile. The NAIC Reinsurance Task Force recently proposed replacing the current 100 percent collateral mandate on non-U.S. reinsurers with requirements that all secondary companies post some collateral, based primarily on their financial strength ratings.
National Association of Insurance Commissioners President Al Iuppa said he hopes for approval by both the Task Force and the parent Financial Condition Committee at the winter meeting next month.
The move prompted outcries from domestic carriers. "What will be the value of a U.S. license" if the NAIC's proposal goes through? asked Marcia Cohen, vice president of the Reinsurance Association of America.
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