This market briefing will explain the advantages and limitations of reciprocal reinsurer status, the process by which a non-U.S. reinsurer can gain and maintain such status and the interplay of reciprocal reinsurer status with other subsisting reinsurance collateral options.

Description

In April 2018 the EU-U.S. Covered Agreement entered into force followed on December 30, 2020 by the UK-U.S. Covered Agreement. The two Covered Agreements addressed several different cross-border insurance regulatory matters but principally for purposes of this briefing with respect to eliminating reinsurance collateral for non-U.S. reinsurers domiciled in an EU member state or the UK.

At this market briefing, our guest speakers will recap the evolution of U.S. credit for reinsurance regulation from the era of 100% funding of liabilities to today’s zero collateral standard. The presentation will explain the advantages and limitations of reciprocal reinsurer status, the process by which a non-U.S. reinsurer can gain and maintain such status and the interplay of reciprocal reinsurer status with other subsisting reinsurance collateral options.

Speakers

• Thomas M. Dawson, Partner (New York), McDermott Will & Emery LLP
• Andrea T. Best, Partner (London), McDermott Will & Emery LLP