The approval came despite vociferous opposition from some regulators and representatives of the domestic industry who felt that the concept of treating all reinsurers equally in terms of credit risk regardless of country of domicile posed a solvency threat to U.S. policyholders.

Industry representatives praised the move back to the task force, particularly the emphasis on broadening the approach to reinsurance regulation reform that goes beyond the collateral issue.

Franklin Nutter, president of the Reinsurance Association of America, called the issue “narrow” and said it has dominated NAIC discussions for years.

“The reinsurance industry operates on a global capital business model,” he said. “Regulation must reflect the evolving nature of capital management, international regulatory and accounting developments, and more contemporary criteria.”

The committee charged the task force with looking at the following issues:

o The appropriate risk-based capital charge for reinsurance.

o A single home regulator for U.S.-licensed reinsurers.

o Credit and insolvency risk for cedants.

o Regulatory reliance on risk management systems for cedants and assuming reinsurers.

o Coordination among regulatory authorities within the U.S. and in cross-border transaction.