Spokesman Sean McGovern says NAIC must now seek 'speedy implementation'

Lloyd’s has welcomed news that the National Association of Insurance Commissioners (NAIC) has adopted its Reinsurance Regulatory Modernization Framework Proposal as a conceptual framework.

The proposal aims to modernise the US state-based regulation of reinsurance, including modifying the hotly debated collateral requirement for foreign reinsurers and creating two new classes of reinsurers in the US: US domiciled national reinsurers and non-US based port of entry reinsurers.

Lloyd’s, which has been at the forefront of the past decade’s lobbying for change, welcomed the move, with Sean McGovern, Director and General Counsel, saying: “We are pleased that the NAIC has adopted a new policy framework for the regulation of reinsurers. This has been a long time coming and is a major step forward. However, the focus must now switch to ensuring speedy and consistent implementation across all States. This is likely to require some form of federal legislation."

Commenting on the proposal in a statement, Steven M Goldman, New Jersey Banking and Insurance Commissioner and Chair of the NAIC Reinsurance Task Force, said: “Now, we must focus on developing the specifics of this new regulatory regime and taking the appropriate legislative steps to make the proposal a reality.”