UIA chief: U.S. could lead to long-awaited elections Regulat

 

Friday, Mar 06,2009, 6:35:07 PM   Click:

UIA chief: U.S. could lead to long-awaited elections Regulatory Change Robert O'Connor
The election of Barack Obama as President of the United States has fueled expectations the European side of the Atlantic as expected reinsurance regulatory change will take place.

This hope was expressed by Dave Matcham, Chief Executive of the International Underwriting Association, which represents members of the society of London market.

The United States election, said Matcham, has generated a wind of change in America yet. And I really hope that President Obama can deliver on this perception. "

During the presidential campaign, said Matcham, the UIA has the intention to pick up clues about Obama on the view of regulation of insurance and reinsurance. "We of course followed by the election process very closely," he said in an interview in his office at the London Underwriting Center.

Matcham was encouraged by the apparent willingness of insurance regulators from the State to cooperate with the new administration and by the approval in December 2008 by the National Association of Insurance Commissioners of a new regulatory approach for reinsurance.

Meeting in Grapevine, Texas, the NAIC voted almost unanimously in favor of rules that greatly reduces the requirements of security for foreign reinsurers doing business in the United States (BestWire, Dec. 8, 2008). While federal approval is still needed, said Matcham, the NAIC vote "clearly shows a willingness to change the current regime."

The NAIC meets again in March, when Matcham hopes the organization will have a draft bill in place that Congress can pass this year.

These efforts, Matcham said, both are supported by non-US and U.S. reinsurers. There is support for a single regulator, or the use of a State by a reinsurer as a foot for the entire U.S. market. There is also support security rules that are based on a needs basis rather than across the board. "

Matcham waiting to see whether a further review of the insurance and reinsurance companies should be regulated by the federal government or states. He cited legislation in previous years attempts to introduce the idea of an optional federal charter or a federal office of insurance information that would have a supervisory role. He also attempts to apply a new approach to federal regulation effects of the current economic crisis.

"So everyone is on the whole," said Matcham. "It May be a little too early to say what direction or initiatives to be taken into account. And in May there be another [idea] that we have not even thought of. "

Matcham argues that the structure that could emerge from this process should reflect the nature of reinsurance as a global business led by very large organizations.

The opposition to change, Matcham suggested, could come from some, but not all "of the U.S. insurer. "Despite this opposition, the regulators have seen the meaning and the need for regulatory reform," he said.

(By Robert O'Connor, London editor: Robert.OConnor @ ambest.com)

Copyright © 2009 hours Best Company, Inc. The election of Barack Obama as President of the United States has fueled expectations the European side of the Atlantic as expected reinsurance regulatory change will take place.