Zero Reinsurance Collateral: EU Starts New Effort


One source of dispute between non-United States reinsurers and United States insurance regulators has been the amount of reinsurance collateral that must be established in order for their United States cedents to take full reinsurance credit.

Various entities have been lobbying the National Association of Insurance Commissioners for decades. Until 2011, this effort fell on deaf ears.

In late 2011 the collateral rules were revised so that under certain conditions less than 100% collateral could be established by non-United States reinsurers and the cedent still receive full credit for the reinsurance.

In the following article it seems that the EU is going to continue its efforts to reduce collateral still further: Reuters Reinsurance Article of April 21, 2015

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