Florida's has now become the second state after New York where a proposed measure is under consideration to eliminate a requirement that foreign reinsurers post hefty collateral in order to do business.

State Insurance Commissioner Kevin McCarty, in a statement issued today in the wake of a Monday workshop on his proposed new rule, said the move would improve the insurance marketplace.

"Allowing foreign reinsurers to conduct business with Florida insurers without requiring them to post millions of dollars in collateral will lead to increased capital and competition in our state," Mr. McCarty said in a statement. "These factors will help to stabilize and potentially reduce property insurance rates."

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.