On 22 November 2016, the Bermuda Monetary Authority announced that it had hosted its first bilateral meeting with the NAIC in Bermuda, since signing a Memorandum of Understanding in August 2015 at the NAIC Summer National Meeting in Chicago.
The NAIC is the US standard-setting and regulatory support organisation created and governed by the country’s chief insurance regulators from the 50 US states, the District of Columbia and five US territories.
Effective 1st January 2015, Bermuda has enjoyed full Qualified Jurisdiction status from the NAIC, allowing Bermuda (re)insurers to reinsure US risk on a non-discriminatory basis.
Jeremy Cox, Authority CEO chaired the Dialogue. “It was wonderful to have the NAIC President-elect and Vice President here with us in Bermuda,” Mr. Cox said. “Maintaining open and frank dialogues between national regulators is a vital component of supervision today. We look forward to meeting the NAIC again here soon in what we hope will be a biennial visit.”
NAIC President-Elect and Wisconsin Insurance Commissioner Ted Nickel said, “The relationship between Bermuda and US insurance regulators is critical. Our semi-annual dialogues help reinforce areas where we are working together, which is important given the role Bermuda’s reinsurers play in protecting US policyholders,” Mr. Nickel said. “In recognition of the strength of Bermuda’s regulatory framework, Bermuda was one of the first countries to be deemed an NAIC Qualified Jurisdiction, resulting in reduced collateral requirements for insurers selling policies in the US.”
Bermuda and the US have strong reinsurance links and so regulatory developments of mutual importance to both the US and Bermuda were discussed, including: Bermuda’s Solvency II equivalence work and ongoing efforts; alternative risk transfer mechanisms; approaches to mortgage (re)insurance; group capital calculations; principles-based reserving and cyber security.
Important work being conducted at key international standard-setting bodies, such as the International Association of Insurance Supervisors’ Supervisory Forum, and the development of International Capital Standards, was also discussed.