NU Online News Service, Sept. 25, 10:01 a.m. EDT
The Florida Office of Insurance Regulation and the Bermuda Monetary Authority have signed a memorandum of understanding, Florida Insurance Commissioner Kevin McCarty said.
Under the agreement, both parties are committed to work together to share critical information and to coordinate regulatory activities affecting consumers in Bermuda and Florida, yesterday's announcement said.
The agreement follows similar OIR agreements with the United Kingdom's Financial Services Authority and Germany's regulator BaFin earlier this year.
The Bermuda Monetary Authority regulates financial institutions including insurance companies and insurance intermediaries in Bermuda.
According to Mr. McCarty, although the OIR and the Authority have worked together in the past, this agreement will give each regulatory agency a formal procedure for cooperation and coordination.
Specifically, the memorandum provides for the exchange of information relevant to each agency's supervisory, regulatory and examination responsibilities and where appropriate, investigative assistance with insurance companies and intermediaries.
"Just as we work closely with other state regulators in this country to monitor company solvency and implement consumer protections, we must also increase communication and cooperation with our international counterparts," said Commissioner McCarty.
"As we observed during the downturn of our economy a year ago, America's insurance markets are systemically intertwined with those of other countries," he noted.
Matthew Elderfield, Authority chief executive officer, said, "The MOU means we can assist each other on supervisory matters involving companies of common interest within our respective markets. Taking such actions is in the ultimate interests of policyholders and supports overall stability in the insurance market."
According to data published by the Association of Bermuda Insurers and Reinsurers, Bermuda's reinsurers paid $22 billion to rebuild the U.S. Gulf and Florida coasts from the hurricane seasons of 2004 and 2005, and Bermuda carriers currently provide more than 60 percent of the hurricane reinsurance in Florida and Texas.
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