While a group representing London market underwriters welcomes a National Association of Insurance Commissioners recommendation that five international regulators be added to its list of qualified jurisdictions, the International Underwriting Association says it does not go far enough in leveling the playing field for overseas reinsurers operating in the United States.

The NAIC said last week that five regulators should be added to its list of qualified jurisdictions effective Jan. 1, 2015.

If the full NAIC membership agrees this week, reinsurers from those five jurisdictions would be able to post less collateral to underwrite reinsurance in the United States under the NAIC's Credit for Reinsurance Model Law.

The five regulatory bodies are the Bermuda Monetary Authority; Germany's BaFin, which translates to the German Federal Financial Supervisor Authority; the Paris-based Autorite de Controle Prudentiel et de Resolution; the Central Bank of Ireland; and the Bank of England's Prudential Regulation Authority.

“Reinsurance collateral reform continues to play a prominent role in discussions with federal and international authorities. This move toward adding jurisdictions enhances the NAIC's position on this issue,” Adam Hamm, president of the NAIC and insurance commissioner for North Dakota, said in a statement.

The recommendation for the Bermuda “is an endorsement of the BMA's robust and comprehensive supervisory regime,” said Bradley Kading, president of the Association of Bermuda Insurers and Reinsurers.

The London-based IUA, which represents London company market insurers, welcomed addition of the U.K. Prudential Regulatory Authority to the list, but also said the proposal should go further. While U.K.-regulated reinsurers should see reduced collateral requirements, “we'd like to see covered agreements,” a spokesman said.

Covered agreements are arrangements where the Federal Insurance Office can preempt state law and reduce or remove collateral requirements.