Bermuda’s regulatory market has been granted Reciprocal Status with the US as part of a new initiative.
The Reciprocal Status is a new designation introduced this year, by the National Association of Insurance Commissioners (NAIC), the U.S. insurance regulatory body and Bermuda’s elevated status, will take effect from 1 January 2020.
The result is Bermuda-based re/insurers can operate in the market without additional capital requirements. It puts Bermuda on an equal footing with the EU and the UK.
Roland Andy Burrows, CEO of the Bermuda Business Development Agency (BDA), (pic) said: “Today’s endorsement from the NAIC is a significant win for Bermuda and testament to the hard work that takes place to ensure we remain at the forefront of the global (re)insurance market. We thank the BMA for their efforts, as well as the NAIC and all our industry stakeholders, and look forward to a positive 2020.”
John Huff, President, Association of Bermuda Insurers and Reinsurers (ABIR) said: “Bermuda’s leading reinsurers have long been reliable partners in providing natural catastrophe and specialty reinsurance and a growing amount of cyber insurance protection for U.S. consumers. The hard earned ‘reciprocal jurisdiction’ status demonstrates the quality of Bermuda’s world-class regulatory regime and gives Bermuda a competitive edge against other international markets.”
“NAIC qualification is extremely important to BILTIR member companies as much of our business is transacted in and with the U.S,” added Ronnie Klein, Senior Advisor, Bermuda International Long Term Insurers and Reinsurers (BILTIR) “We are proud to be considered in the same jurisdictional category as Japan and Switzerland and it shows that all of the hard work the Bermuda Monetary Authority has done paid off. BILTIR members will continue to partner with the BMA to make certain that Bermuda remains NAIC-qualified.”