Reinsurance Supervision The US Perspective ASSAL XIV Annual Meeting Alessandro Iuppa, Superintendent Maine Bureau of Insurance, USA.

Slides:



Advertisements
Similar presentations
Asia Pacific Tax Training (PwC)
Advertisements

Roundtable Meeting on Compliance Aspects of Accounting, Auditing and Regulatory Requirements of Insurance Companies 6 th November, 2007 Hyderabad.
Kenny C. Guinn, Governor Sydney H. Wickliffe, CPA, Director Alice A. Molasky-Arman, Commissioner Division of Insurance
1 PRESENTATION TO THE SELECT COMMITTEE ON FINANCE.
1 U. S. Risk-Based Capital Requirements and Their Context Alfred W. Gross Virginia Commissioner of Insurance National Association of Insurance Commissioners.
Custody. Definition of Custody NASAA vs. SEC Eight Safekeeping Requirements Exam Items.
WELCOME TO THE INDUSTRIAL COMMISSION SELF-INSURANCE SEMINAR.
Overview of U.S. Solvency Framework David Vacca, CPA Assistant Director Insurance Analysis & Information Services NAIC Regulatory Services Division.
RISK MANAGEMENT FOR ENTERPRISES AND INDIVIDUALS Chapter 8 Insurance Markets and Regulation.
Chapter Thirteen Qualification of Foreign Corporations.
Personal Relationships…Professional Solutions Comprehensive Wealth Management Presented By Reliance Trust Company John A. Rodgers, III.
An Introduction to Captive Insurance F. Hale Stewart, JD, LLM, CTEP, CWM, CAM Author of the book U.S. Captive Insurance Law Captiveinsuranceinfo.com
Legal Responsibilities for Board Members of Nonprofit Organizations Or…all you need to know to stay out of trouble. Presented: July 2007 Prepared by: Elsbeth.
Chapter 43 An Act Relative to Improving Accountability and Oversight of Education Collaboratives Presentation to Board of Elementary and Secondary Education.
The Advisers Act Custody Rule
Investment Adviser Workshop: the New Form ADV Part 2, New Rules, and the IA Switch.
Conference on Voluntary Pension System- August 11, ROLE OF TRUSTEE IN PROTECTING THE PENSION FUND UNDER THE VOLUNTARY PENSION SYSTEM (VPS) AND OTHER.
TAX EXEMPTION AND RELATED ISSUES FOR THE NOT FOR PROFIT (NFP) CORPORATION REUBEN S. SEGURITAN 7 Penn Plaza, Suite 222 New York, NY Tel. No. (212)
Patty Bartlett Logan County Treasurer / Public Trustee.
Topic 7. Insurance Markets and Regulation
Prof. GAO yongfu Shanghai University of International Business and Economics May 16-17, 2013.
Insurance Fundamentals for Policymakers. Four assignments: Insurance Principles Insurance Coverages: Property and Casualty Insurance Coverages: Life and.
The current status of the insurance sector in Egypt.
Foreign Account Reporting
Reinsurance Financial Concerns Frank J. Maffa, CFE, CIE Vice President American Re-Insurance Company.
Copyright © 2008 Pearson Addison-Wesley. All rights reserved. Chapter 8 Government Regulation of Insurance.
Section 12-2-Regulatory Agencies and Laws.   These agencies make or enforce rules and regulations  Agencies provide oversight or supervision of activities.
Wednesday, October 13, 2010 Licensing procedures of a Connecticut Domiciled Insurance Company.
Financial Resource Management Recommended Best Practices Training for Volunteers and Support Groups.
Enforcement Action for 2014
Business Entities under the General Corporation Law of Delaware 1 Civil Service Bureau Reform & Development Department
Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics.
R L Captive Solutions Cost Control Presentation by Travis Lantis R L Consulting, LLC.
Presentation to the Oversight Board Santa Clara County Auditor-Controller 1.
Implementing a Medicare Compliance Program. Implementation of Medicare Compliance Program Rules & procedures to reduce chance of wrongdoing High level.
THE USE OF ADMINISTRATIVE BANKING AND INSURANCE DATA 1 Presented by Hazel Corbin Statistics Adviser, ECCB Palm Haven Hotel Saint Lucia 3 to 7 February,
Best Practices for Service Providers / Accounting & Financial Reporting Issues Facing the Industry (GAAP, SAP, IFRS) Donald B. Rousso Paul Shanbrom Travis.
Advanced Program in Auditing and Accounting Regulation Module 12 Enhancing Statutory Audit Quality from a Financial Regulator’s Perspective Presenter:
Introduction to company ,types
Regulatory Reinsurance Collateralisation Requirements AIDA Reinsurance Working Party Copenhagen, Thursday 11 June 2015 Julian Burling 1.
Copyright © 2008 Pearson Education Canada14-1 Chapter 14: Corporations.
National Bank of Tajikistan Dadoboeva F. National Bank of Tajikistan Headquarters - Dushanbe Headquarters - DushanbeDushanbe Currency - Somoni Currency.
ESOPs: It’s More Than a Matter of Trust Presented by: Dan Reser President; Fiduciary Services, Inc
By: Marife Umali and Pearl Mabutas Term Paper Compliance of Phil. Non-Life Insurance Companies to Risk- Based Capital as Imposed by the Insurance Commission.
BANKING REGULATION ACT,1949 & THE BANKING OMBUDSMAN SCHEME,1995.
Chapter 15 Debt and Equity Capital McGraw-Hill/IrwinCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2007, The American College. All rights reserved. Used with permission. Planning for Retirement Needs Plan Funding and Investing— Part I Chapter.
CITY OF DALLAS INVESTMENT POLICY ANNUAL REVIEW
ABDUL RASHID MBAECM, MBA, MIS, CHRM, BA, DIP PRESIDENT PHONE ANTIQUA ROAD, MISSISSAUGA L5B 2T8 ONTARIO, CANADA.
Mini Case Study on Insurance Core Principles - ICP23 Capital Adequacy and Solvency - Insurance Training Seminar IAIS - ASSAL Buenos Aires, Argentina, 1-4.
Copyright © 2008 Pearson Addison-Wesley. All rights reserved. Insurance Company Operations.
Bhaiya M. Sondawle Donilia Cuffy Martin Libinga Sarika Wattuhea Limbikani Nundwe.
T4.1 H&N, Ch. 4 Chapter Outline 4.1CONTRACTING COSTS OF RISK POOLING ARRANGEMENTS Types of Contracting Costs Ex Ante Premium Payments vs. Ex Post Assessments.
Reinsurance Overview ASSAL – July 2011 Todd Sells Director—Financial Regulatory Services National Association of Insurance Commissioners © 2011 National.
May 5, 2016 May 5, Reporting obligations for  Investment banks,  Stockbrokers and dealers  FM and Investment advisers 2. Publication financial.
1 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 17 – Economic and Monetary Policy.
Florida Insurance Conference on Financial Reporting September 14, 2011 Florida P&C Guaranty Funds.
1 GUKEYEH GUK’EH GU’SANI Kaska Dena Government Finance Act Prepared for Presentation to Annual General Assembly August 12, 13 and 14, 2008.
Treasury Market Risk Management. Treasury Management Treasury management is a broader concept than liquidity management Management of cash flows in terms.
Corporations and Trusts Law Chapter 9
Source and Nature of Debt
BFN 428 -Types of Pension Funds
Chapter 7 Associations.
An Exciting New Service
Legal Aspects of Finance
BVI Business Companies Act Workshop
17 Banking and Financial Services
Establishing and Maintaining an OPEB Trust
JUSTICE ADMINISTERED FUND BILL [B ] BRIEFING OF THE SELECT COMMITTEE ON SECURITY AND JUSTICE ON 8 NOVEMBER 2016.
Recognized Obligation Payment Schedule (ROPS) Certification Process
Presentation transcript:

Reinsurance Supervision The US Perspective ASSAL XIV Annual Meeting Alessandro Iuppa, Superintendent Maine Bureau of Insurance, USA

May 03 ASSAL XIV Annual Meeting 2 The US Perspective State Level Predicated Upon Solvency Minimum Capital & Surplus Requirements Risk Based Capital Standards Examination Authority Holding Company Regulation Domestic Reinsurers = Primary Insurers Credit for Reinsurance Regulation of Reinsurance Intermediaries

May 03 ASSAL XIV Annual Meeting 3 National Association of Insurance Commissioners (NAIC) Model Law: Credit for Reinsurance Model Regulation: Credit for Reinsurance Model Law: Reinsurance Intermediary

May 03 ASSAL XIV Annual Meeting 4 Credit For Reinsurance Benefit To Ceding Carrier… Reduction in Liabilities Increase in Assets

May 03 ASSAL XIV Annual Meeting 5 Reinsurer Type: Licensed Same State as Ceding Company Licensed for “Like Kind of Business”

May 03 ASSAL XIV Annual Meeting 6 Reinsurer Type: Accredited Must Submit To Enacting State’s Jurisdiction Must Submit To Enacting State’s Examination Authority Reinsurer Must be Licensed in at Least 1 State Reinsurer Must File Its Annual Financial Statement To Ceding Company’s Domiciliary State Maintain Policyholder Surplus of at Least $20 million

May 03 ASSAL XIV Annual Meeting 7 Reinsurer Type: Licensed in Substantially Similar State Licensed for “Like Kind of Business” Reinsurer Must Submit To Enacting State’s Examination Authority Policyholder Surplus of at Least $20 million

May 03 ASSAL XIV Annual Meeting 8 Reinsurer Type: Trust Fund Insurer Domiciliary Commissioner Approval Needed Trust & Amendments or Another State Accepts Regulatory Responsibility Trust Form & Amendments Must be Filed in All States Where Risks are Located

May 03 ASSAL XIV Annual Meeting 9 Trust Fund Insurer Contested Claims Valid & Enforceable In Any U.S. Court of Competent Jurisdiction Trust Vests Legal Title to Assets to Trustees For Benefit of the Ceding Company Trust & Assuming Insurer Shall be Subject to Examination

May 03 ASSAL XIV Annual Meeting 10 Trust Types Single Assuming Insurer A Group Including Incorporated and Individual Unincorporated Underwriters A Group of Incorporated Underwriters Under Common Administration

May 03 ASSAL XIV Annual Meeting 11 Single Assuming Insurer $20 Million of Trusteed Surplus, and Assuming Insurer’s Total Liabilities Attributed to Reinsurance Ceded by U.S. Insurers

May 03 ASSAL XIV Annual Meeting 12 Group of Incorporated & Individual Unincorporated Underwriters After 8/1/1995 The Trust Not Less Than the Groups Several Liabilities Attributable to Business Ceded by U.S. Domiciled Ceding Insurers Before 7/31/95 The Trust shall consist of the Group’s several liabilities attributable to Business written in the U.S. $100 Million of Trusteed Surplus 90 Days After Financial Statements Are Due Audited Financial Statements or Certification by Group’s Domiciliary Regulator Solvency of Each Underwriter Member

May 03 ASSAL XIV Annual Meeting 13 Group of Incorporated Underwriters Under Common Administration Trust Fund Amount: Not Less than the Group’s Several Liabilities Attributed to Business Ceded by U.S. Ceded Insurers to Any Group Member $100 Million Trusteed Surplus Held Jointly for Benefit of U.S. Domiciled Ceding Insurers of Any Member of the Group $10 Billion Aggregate Surplus

May 03 ASSAL XIV Annual Meeting 14 Group of Incorporated Underwriters Under Common Administration ( 2 ) Submits to U.S. Court of Competent Jurisdiction Service of Process Appoints Enacting State’s Commissioner or Designated Attorney Agent 90 Days After Financial Statements Are Due Audited Financial Statements Certification by Group’s Domiciliary Regulator Solvency of Each Underwriter Member

May 03 ASSAL XIV Annual Meeting 15 None of the Above Domestic Insurer May Reduce Its Liabilities by An Amount Not Exceeding the Liabilities Carried by the Ceding Insurer Amount of Funds Held by or on Behalf of the Ceding Insurer Amount of a Trust Held in a Qualified U.S. Financial Institution Security in the form of Cash Securities Listed by the SVO of the NAIC As Qualified Admitted Assets Letters of Credit Clean Irrevocable and Unconditional Any Other Form Acceptable to the Commissioner

May 03 ASSAL XIV Annual Meeting 16 Credit For Reinsurance Model Regulation Asset Requirements Must Be Valued at Fair Market Value Must Consist of Cash or Certificates of Deposit Issued by U.S. Financial Institutions Other Investments Maybe Authorized Government Obligations (Payable From Taxes & Related Revenue) Government Obligations of OECD Member If Rated A or Higher by NAIC SVO Obligations of a Multinational Development Bank If Rated A or Higher by a Recognized Agency

May 03 ASSAL XIV Annual Meeting 17 Credit For Reinsurance Model Regulation ( 2 ) Asset Restrictions No More Than 20% May Be Foreign Investments No More Than 10% May Be Dominated in Foreign Currencies Investments Issued by Grantors, a Party Controlled by the Grantor, or a Beneficiary, Shall Not Exceed 5% of the Total Investments A Mortgage Related Security May Not Exceed 5% of Trust Assets

May 03 ASSAL XIV Annual Meeting 18 Reinsurance Intermediary Model Act Adopted by NAIC in 1989 (Amended 1990, 1993, & 2001) Incorporated in NAIC Accreditation Program in 1990 Adopted by Nearly All States in Some Form Requires Certain Contract Provisions Between Intermediary and the Party It Represents

May 03 ASSAL XIV Annual Meeting 19 Types of Reinsurance Intermediaries Reinsurance Intermediary Broker Acts on Behalf of Ceding Insurer Does Not Have Authority to Bind Ceding Insurer Requires Licensure

May 03 ASSAL XIV Annual Meeting 20 Reinsurance Intermediary Broker Must… Render Accurate Accounts to the Ceding Insurer Remit Funds Within 30 Days of Receipt Retain Funds Collected in a Fiduciary Capacity in a Qualified U.S. Financial Institution

May 03 ASSAL XIV Annual Meeting 21 Types of Reinsurance Intermediaries Manager Acts on Behalf of Assuming Reinsurer Authority to Bind Assuming Reinsurer or Manages All or Part of the Reinsurer’s Assumed Business

May 03 ASSAL XIV Annual Meeting 22 Types of Reinsurance Intermediaries Reinsurance Intermediary Manager Requires Licensure May not be An Employee of the Reinsurer A U.S. Manager of a Branch of an Alien Insurer A Pool Manager of a Residual Market Mechanism An Underwriting Manager Under Common Control With the Reinsurer and Subject to Holding Company Act

May 03 ASSAL XIV Annual Meeting 23 Types of Reinsurance Intermediaries Reinsurance Intermediary Manager Must Render Accurate Accounts to the Reinsurer Remit Funds Due the Reinsurer on a Monthly Basis Retain Funds Collected in a Fiduciary Capacity in a Qualified U.S. Financial Institution Retain No More Than 3 Months Estimated Claims Payments & ALAE Maintain a Separate Bank Account for Each Reinsurer Represented

May 03 ASSAL XIV Annual Meeting 24 Both Reinsurance Brokers and Managers Must…. Retain Complete Records of Transactions for at Least 10 Years Permit Access to and Right to Copy Records by Client Comply With Written Standards Established by the Insurer for Cession of Risks

May 03 ASSAL XIV Annual Meeting 25 A Reinsurer and Insurer is… Prohibited From Using Unlicensed Reinsurance Broker or Manager Prohibition Against Employing Individual Controlled by the Intermediary Unless Parties Are Under Common Control Required to Obtain Financial Statement of the Intermediary

May 03 ASSAL XIV Annual Meeting 26 Duties Imposed Upon Reinsurer… If Reinsurance Manager Establishes Loss Reserves, Reinsurer Must Obtain Annual Opinion of Reserve Adequacy Binding Authority for All Retrocessions Rests With Officer of the Reinsurer Reinsurer Shall Not Appoint to Its Board of Directors Anyone Associated With the Reinsurance Manager

May 03 ASSAL XIV Annual Meeting 27 For Further Information Alessandro Iuppa Superintendent of Insurance Bureau of Insurance State of Maine 34 State House Station Augusta, Maine USA Phone: (207) Web: Bryan Fuller Reinsurance Manager NAIC 2301 McGee Street, Suite 800 Kansas City, MO USA Phone: (816) Web: