BestDay Audio: Executives from Berkley, Lloyd's, Swiss Re Debate Reinsurance Collateral Rules.OLDWICK, N.J. -- Three global insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. leaders have different and sometimes opposing views on whether non-U.S. reinsurers should be required to post collateral to operate in U.S. markets. Their full debate is heard in the Sept. 28 edition of BestDay Audio, an online insurance news program at www.bestdayaudio.com. William R. Berkley, chairman and chief executive officer of W.R. Berkley Corp.; Julian James, director of worldwide markets for Lloyd's; and Pierre Ozendo, chairman of Swiss Re's Americas property and casualty division, differ in their approaches to changing collateral requirements. In December, the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. will address the topic. Berkley favors the existing regulations, saying they are necessary to guarantee that foreign reinsurers fully honor their financial commitments here. He notes that exposure to liability and the duration of those risks are greater in the U.S. market than elsewhere in the world. Swiss Re's Ozendo argues instead that regulation must be modernized mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. to remain the final arbiter of solvency The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one's debts. solvency n. . James of Lloyd's said the existing rules aren't an incentive to U.S. insurers to do business with the most financially stable reinsurers. The 35-minute episode featuring the three reinsurers is online in mp3 format at: http://feeds.feedburner.com/~r/BestdayAudio/~3/28720503/20060928.mp3. iTunes users can subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; BestDay Audio at: http://phobos.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=16441 6573. (Due to its length, this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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