The Present and Future of Reinsurance Regulatory Modernization: Surplus Lines Regulation After the NRRA, the Latest on Credit for Reinsurance Standards and the Emergence of Reduced Collateral Requirements

February 27, 2015 8:00am

Laurie LaPalme
Partner
Cassels Brock & Blackwell LLP

Myra E. Lobel
Managing Director
Guy Carpenter & Company‚ LLC

Lawrence Mirel

Nelson Brown & Co.

David L. Schonbrun
Head of Legal
Hiscox USA

  • What strides have been taken by the NAIC to preserve and improve state-based regulation of reinsurance? What have the implications been?
  • How has the NAIC been working with some of the states to liberalize reinsurance collateral requirements?
  • What revisions were adopted to the NAIC credit for reinsurance statutes and regulations, and what implications have these revisions had on reducing reinsurance collateral requirements for non-US licensed reinsurers in qualified jurisdictions?
  • What do the revised credit for reinsurance standards require with regard to notification of reinsurance concentration risk? When is a state/insurer required to comply with these notification provisions?
  • What states have adopted reduced reinsurance collateral provisions? What are the implications of adopting such provisions?
  • What is the NAIC’s process for evaluating non-U.S. jurisdictions and determining whether they should be approved as “Qualified Jurisdictions?”
  • What jurisdictions has the NAIC granted preliminary approval to?
  • Will reciprocity be granted by other jurisdictions to companies once they are certified by one state?
  • How is the reinsurance market impacted in these states?
  • How quickly are other jurisdictions looking to become approved as qualified jurisdictions?
  • How quickly are additional states adopting the new reduced collateral provisions?
  • What is the latest on the US/FIO’s pursuit of a covered agreement for reinsurance collateral requirements?
  • What is on the horizon for 2015 – 2016?
  • An assessment of surplus lines regulation after the Nonadmitted and Reinsurance Reform Act (NRRA) – what are the key areas of regulation that surplus lines insurers need to be aware of?