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Bermuda, Japan & Switzerland Added to NAIC List of Reciprocal Jurisdictions

Bermuda, Japan & Switzerland Added to NAIC List of Reciprocal Jurisdictions

AUSTIN, Texas (Dec. 10, 2019) — Three international regulatory authorities were approved by the National Association of Insurance Commissioners (NAIC) as Reciprocal Jurisdictions. Under the NAIC's Process for Evaluating Qualified and Reciprocal Jurisdictions (Process), the Bermuda Monetary Authority (BMA); Japanese Financial Services Agency (FSA); and Swiss Financial Market Supervisory Authority (FINMA) will be placed on the NAIC List of Reciprocal Jurisdictions effective January 1, 2020.

"The NAIC has a successful history of working with Bermuda, Japan and Switzerland as Qualified Jurisdictions," said Eric A. Cioppa, NAIC President and Maine Insurance Superintendent.  "As U.S. ceding insurers and state regulators have a large degree of confidence in their supervision of reinsurers, they should receive similar treatment to reinsurers domiciled in Covered Agreement jurisdictions."

Originally adopted by the NAIC in 2013 to address Qualified Jurisdictions, the Process was amended in 2019 to recognize Qualified Jurisdictions meeting certain additional requirements consistent with the terms of the Covered Agreements with the European Union and United Kingdom. EU-member countries that are subject to an in-force Covered Agreement eliminating reinsurance collateral requirements with U.S. ceding insurers are automatically included on the NAIC List of Reciprocal Jurisdictions, as well as U.S. jurisdictions meeting requirements for accreditation under the NAIC Financial Standards and Accreditation Program.

The NAIC approved revisions to the Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation (#786) in June to make the models consistent with the Covered Agreements with respect to reinsurance collateral requirements.

States must comply with the provisions in the Covered Agreement within five years of the signing of the agreement with the EU or face potential preemption by the Federal Insurance Office (FIO). The agreement was signed on Sept. 22, 2017.

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

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