Members of the National Association of Insurance Commissioners (NAIC) met recently to discuss regulatory solutions to ensure the continued strength and stability of the financial guaranty insurance market.
„State insurance regulators are working together so that all states and municipalities will have continued access to highly rated financial guaranty insurers,“ said NAIC President and Kansas Insurance Commissioner Sandy Praeger. „New York and Wisconsin have brought leadership to this issue, in a way that will help us quickly and effectively enact proactive solutions to protect America’s insurance consumers.“
New York State Insurance Superintendent Eric Dinallo of the New York Department of Insurance recently facilitated an accelerated licensure approval of Berkshire Hathaway Assurance Corporation to write financial guaranty insurance in New York state. Wisconsin Insurance Commissioner Sean Dilweg has been working closely with Ambac Financial, the largest writer of financial guaranty insurance, to confirm that the company remains stable and well-capitalized.
„In order to create market demand for their issues, states and municipalities need access to financial guaranty insurance from a triple A-rated insurer,“ Praeger said. „We are taking any and all necessary steps – including the expedited licensure of companies like Berkshire – to ensure a healthy and competitive insurance market.“
As part of a three-part plan to address this issue, state insurance regulators will continue to closely monitor financial guaranty insurers to assess their potential for distress. They will also be assessing the need for new laws or regulations and they will be facilitating the speedy entrance of well-capitalized companies into the bond insurance marketplace.
In fact, the NAIC is currently working with Berkshire Hathaway Assurance Corporation to submit an Expansion Application using the NAIC’s Uniform Certificate of Authority Application (UCAA). The UCAA provides a streamlined, uniform application process for insurers seeking to do business in multiple states.
About the NAIC
Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC at www.naic.org/press_home.htm.