Conn. Dept, Swiss Regulator Enter MoU

NU Online News Service, Sept. 27, 11:34 a.m. EDT

The Connecticut Insurance Department (CID) and the Swiss Financial Market Supervisory Authority (FINMA) have signed a memorandum of understanding (MoU) to allow for closer regulatory cooperation between the two agencies.

As a result of the agreement, the CID notes, both regulatory agencies may request assistance from the other, including obtaining information on a regulated company or individual.

Connecticut Insurance Commissioner Thomas B. Lionardi says, "The insurance industry is an international one and continues to expand its global reach. Regulating it cannot stop at the border and must be looked at in its totality. This commitment will allow Connecticut and Swiss regulators to work effectively together and ensure market stability for consumer protection."

The CID has a similar memorandum of understanding with De Nederlandsche Bank, N.V, the financial regulator for the Netherlands and has another agreement pending with the Germany Federal Financial Supervisory Authority (BaFin). The CID says it has also applied to be a signatory to the International Association of Insurance Supervisors Multilateral Memorandum of Understanding on Cooperation and Information Exchange, which currently includes 17 non-U.S. jurisdictions.

Other state insurance departments have entered similar arrangements in recent years. For example, the Florida Office of Insurance Regulation has entered into MoUs with the Bermuda Monetary Authority, the United Kingdom's Financial Services Authority and BaFin.

The New York State Insurance Department has entered into MoUs with the China Insurance Regulatory Commission, and with the insurance regulators of the United Kingdom, Thailand, Japan, Germany, Bermuda, France and Macau.