Bermuda has been granted conditional qualified jurisdiction status by the National Association of Insurance Commissioners, effective Jan. 1, the Bermuda Monetary Authority said Friday.
The BMA in September was the first insurance supervisor to agree to participate in an expedited review under the NAIC’s process for developing and maintaining a list of qualified non-U.S. jurisdictions for reinsurance collateral reduction purposes.
Reinsurers licensed and domiciled in Bermuda approved under the NAIC process will be eligible to be certified for reduced reinsurance collateral requirements under the NAIC's Credit for Reinsurance Model Law, the statement said.
The NAIC adopted the Process for Developing and Maintaining the NAIC List of Qualified Jurisdictions on Aug. 27, according to a statement from the organization.
“Having this status is highly relevant to the Bermuda market in terms of potentially facilitating efficiencies in the cross-border operations of Bermuda reinsurance with the U.S. insurance market,” said Jeremy Cox, CEO of the BMA, in the statement. “We look forward to working with the NAIC to complete the process in the coming months.”
Germany, Switzerland and the United Kingdom also were approved by the NAIC, it said in a statement.
A full review of the four approved jurisdictions will take place during 2014, according to the statement.