AIRROC Update

Insurance & Reinsurance News

Regulatory

New AIRROC Regulatory Committee Focuses on Educating Regulators on Runoff

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AIRROC’s Regulatory Committee was established in early 2023 and is co-chaired by two of the AIRROC Board members, Tom Mendralla of Swiss Re and Chris Reichow of R&Q Insurance Holdings, Ltd. The Regulatory Committee has 18 members – a number of which are former regulators.  The focus of the group is to support AIRROC on NAIC and other regulatory activities. As a non-profit … [Read more...] about New AIRROC Regulatory Committee Focuses on Educating Regulators on Runoff

US NAIC Update: Restructuring Mechanisms (E) Working Group

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At its recent meeting on April 4, 2023, the Restructuring Mechanisms (E) Working Group (the “Working Group”) of the US National Association of Insurance Commissioners (“NAIC”) continued to advance the best practices framework it is developing for Insurance Business Transfers (“IBTs”) and Corporate Divisions (“CDs”) in the United States. An IBT is a transaction whereby a … [Read more...] about US NAIC Update: Restructuring Mechanisms (E) Working Group

ESG Battlegrounds: How the States Are Shaping the Regulatory Landscape in the U.S.

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When it comes to ESG in the United States, among the most dramatic developments is an ideological battle unfolding at the state level, pitting liberal-leaning state governments that have embraced ESG-focused investing against conservative-led states that would seek to exclude it. To date, the general consensus had been that the U.S. is lagging on its ESG focus, particularly … [Read more...] about ESG Battlegrounds: How the States Are Shaping the Regulatory Landscape in the U.S.

Ethical Use of AI in Insurance Modeling and Decision-Making

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With increased availability of next-generation technology and data mining tools, insurance company use of external consumer data sets and artificial intelligence (AI) and machine learning (ML)-enabled analytical models is rapidly expanding and accelerating. Insurers have initially targeted key business areas such as underwriting, pricing, fraud detection, marketing distribution … [Read more...] about Ethical Use of AI in Insurance Modeling and Decision-Making

Potential Impact of the Silicon Valley Bank Insolvency on the Insurance Industry

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Financial institutions, including Insurers, are considering the potential impact of the Silicon Valley Bank’s (“SVB’s”) insolvency. SVB and its parent holding company have provided funding and debt financing to InsurTech Insurers and other venture investment firms. Some of those Insurers have already publicly announced the extent to which the SVB Insolvency has had an impact. … [Read more...] about Potential Impact of the Silicon Valley Bank Insolvency on the Insurance Industry

New York Department of Financial Services Looks to Raise the Floor — Again — on Cybersecurity Regulation

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Already considered among the most rigorous cybersecurity requirements for financial services companies, the existing New York Department of Financial Services (“NY DFS”) Cybersecurity Regulation (the “Regulation”) set the standard for a scalable and prescriptive framework for cybersecurity. Its provisions inspired the various state insurance data security requirements of other … [Read more...] about New York Department of Financial Services Looks to Raise the Floor — Again — on Cybersecurity Regulation

DARAG acquires North American captive insurance company for $30mn

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Legacy acquirer, DARAG Group concluded a new agreement with an undisclosed captive insurance company, with a transaction value of approximately $30 million. The transaction, written into DARAG Bermuda, allows the original insurer full legal finality, with DARAG facing the original fronting insurer. Its structure was a novation of its 03-06 and 15/16 policy years with … [Read more...] about DARAG acquires North American captive insurance company for $30mn

NY DFS Issues Circular Letter Addressing Acquisitions and Disclaimers of Control

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On April 19, 2022, the New York Department of Financial Services (“NY DFS”) issued Insurance Circular Letter No. 5 (2022) (the “Letter”).  The Letter, entitled “Acquisitions of Control and Disclaimers of Control”, was addressed to all New York domiciled insurers and other interested parties.  The purpose of the Letter is to remind insurance industry participants of the … [Read more...] about NY DFS Issues Circular Letter Addressing Acquisitions and Disclaimers of Control

The End of Collateral for Non-US Reinsurers Is Here; An ‎UPDATE on “Reciprocal Reinsurers”

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As we previously reported a year ago, the National Association of Insurance Commissioners (NAIC) adopted ‎amendments to the Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation ‎‎(#786) to implement the certain international agreements to eliminate collateral requirements for qualifying ‎reinsurers. The Models created a new category of reinsurers, … [Read more...] about The End of Collateral for Non-US Reinsurers Is Here; An ‎UPDATE on “Reciprocal Reinsurers”

Prepare, Prepare, and Also, Prepare.

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Negotiation Strategies: Tips for Establishing Connection and Optimizing Results Series: Part 2 We all know the scenario: You’ve been chasing your counterparty for weeks, trying to get either payment, a meeting, or a substantive response.  On your end, you reviewed the file and calculated how much you want and, perhaps, how much you might settle for, based upon YOUR analysis … [Read more...] about Prepare, Prepare, and Also, Prepare.

Under the Radar Potential Game Changers: Were you aware of these??

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The second session of the 4th annual Runoff Deal Market Forum focused on some of the less obvious legal, regulatory and NAIC developments that will likely impact the runoff deal landscape.  The esteemed panel included Mayer Brown partner Larry Hamilton who heads the firm’s US Insurance Regulatory & Enforcement group, James Mills, Vice President and Legal Counsel of Enstar … [Read more...] about Under the Radar Potential Game Changers: Were you aware of these??

From the Front Lines

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On February 2nd Allstate Insurance Company filed the first plans of division in the U.S. market to restructure its insurance operations representing a significant step forward for the insurance industry to expand the application of restructuring mechanisms.  The Allstate plans of division were filed with the Illinois Department of Insurance (the “Department”) pursuant to the … [Read more...] about From the Front Lines

Exit Interview with NAIC President Raymond G. Farmer South Carolina Director of Insurance

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It is a beautiful South Carolina fall afternoon, and the Director of Insurance, Ray Farmer, settles into his office to reflect on the remaining months of his term as President of the National Association of Insurance Commissioners (“NAIC”), which he had assumed on January 1, 2020.  I asked Director Farmer how the year has been, and after a long sigh and roll of his eyes, he … [Read more...] about Exit Interview with NAIC President Raymond G. Farmer South Carolina Director of Insurance

AIRROC Continues to Grow its Network!

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AIRROC is pleased to announce the addition of two new members, BMS Group Ltd. and Fortitude Reinsurance Company Ltd., and Gallagher Bassett as a new Corporate Partner.  AIRROC looks forward to working together with BMS, Fortitude Re and Gallagher Bassett on a number of dimensions with the intention of delivering greater service to our shared communities of legacy … [Read more...] about AIRROC Continues to Grow its Network!

What the New Proposed Credit for Reinsurance Regulations Mean for Reinsurance Disputes

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Photo by Pixabay on Pexels.com You remember the Covered Agreements entered into between the US and the UK and the US and the EU to deal with Brexit and Solvency II and international financial standards, right? Well, the New York Department of Financial Services has noticed a proposed regulation implementing the new credit for reinsurance rules required under the Covered … [Read more...] about What the New Proposed Credit for Reinsurance Regulations Mean for Reinsurance Disputes

Notice of Direct Scheme Meeting and Notice of General Scheme Meeting of Stronghold Insurance Company Limited (In Administration)

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NOTICE OF THE DIRECT SCHEME MEETING IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES INSOLVENCY AND COMPANIES LIST (ChD) CR-2020-004278 STRONGHOLD INSURANCE COMPANY LIMITED (IN ADMINISTRATION) AND IN THE MATTER OF THE COMPANIES ACT 2006 NOTICE IS HEREBY GIVEN that, by an order dated 16 December 2020 made in the High Court of Justice, … [Read more...] about Notice of Direct Scheme Meeting and Notice of General Scheme Meeting of Stronghold Insurance Company Limited (In Administration)

Mysteries Underlying Black Lung Liabilities

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Estimating future liabilities for even the most basic line of business involves in-depth analysis of data, expert knowledge of modeling, and professional application of assumptions. Black lung liabilities take reserving to an entirely different level. Black lung compensation is rooted in a complex regulatory and legislative history. The disease itself—pneumoconiosis—involves … [Read more...] about Mysteries Underlying Black Lung Liabilities

Expect Increased New York State Regulatory Enforcement in the Banking and Financial Services Industry

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The New York Attorney General and the New York State Department of Financial Services are leaders in the efforts to fill in the regulatory gap in the wake of perceived reduction in federal enforcement. Read the full article here... … [Read more...] about Expect Increased New York State Regulatory Enforcement in the Banking and Financial Services Industry

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