Company will only have to collateralise 20% of loss reserves
The Florida Office of Insurance regulation has agreed to reduce the collateral requirements for Hiscox Insurance Company (Bermuda), a division of Lloyd's insurer Hiscox, to 20% of loss reserves from 100%.
Non-US reinsurers writing business in the US typically have to fully collateralise their underwriting. However, Florida's insurance regulator has adopted a policy of lowering the level of collateral required for alien reinsurers who are highly-rated and financially sound. Hiscox is the fourth company to receive such a reduction.
"This is a good example of forward thinking by the State of Florida to reduce collateral requirements on foreign reinsurers, thereby making doing business with Florida insurers more attractive," Hiscox Bermuda chief financial officer Krystalle Tobin said in a statement. "I am optimistic that other US states will follow Florida's lead."