New York To End Reinsurance Collateral Rule

New York Insurance Superintendent Eric Dinallo, breaking away from other states’ regulators, said today he planned to do away with collateral requirements for foreign reinsurers with good financial ratings.

The proposed regulation, which some insurance groups called risky and radical, would go into effect in July of 2008. Under the new rule the highest rated U.S. and non-U.S. reinsurance companies not authorized or accredited to do business in New York will be treated the same as New York reinsurance companies.