The Reinsurance Association of America voiced support of the Federal License for Reinsurers Act of 2010, introduced in Congress on December 16 by Rep. Dennis Moore (D-KS). The legislation builds on reforms in the Dodd-Frank Wall Street Reform and Consumer Protection Act which was signed into law earlier this year.
The Federal Insurance License Act would create a federal license for national reinsurers that would be administered by the Director of the new Federal Insurance Office (FIO) created by the Dodd-Frank Act. The legislation promotes harmonization of international standards for regulating reinsurers in order to strengthen global efforts to monitor financial stability, while at the same time supporting the need for a competitive and healthy global reinsurance marketplace.
Frank Nutter, president of the Reinsurance Association of America commented, “Rep. Moore’s legislation is a logical step in further implementing sound reinsurance regulatory reform. It recognizes that it is critical for the FIO and its global partners to work together to improve international coordination and efficient oversight of reinsurance. Reinsurance regulatory reform cannot be accomplished in a vacuum. It is a global business and requires international cooperation to effect a competitive and healthy global marketplace.”
The Reinsurance Association of America (RAA) is the leading trade association of property and casualty reinsurers doing business in the United States.
RAA membership is diverse, including reinsurance underwriters and intermediaries licensed in the U.S. and those that conduct business on a cross-border basis. The RAA represents its members before state, federal and international bodies.