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Insurance regulators in New York and Bermuda have signed an agreement that calls for closer cooperation between the two agencies in overseeing insurance matters.
New York State Insurance Superintendent Eric Dinallo and Matthew Elderfield, chief executive officer of the Bermuda Monetary Authority (BMA), Bermuda’s financial regulator, today announced signed a memorandum of understanding yesterday that establishes a formal basis for consultation, cooperation and coordination between their respective agencies. The agreement provides for the exchange of information relevant to each authority’s supervisory, regulatory and examination responsibilities.
“In light of the increasing globalization of insurance markets, regulators need to cooperate with one another in order to provide proper oversight and protection,” Dinallo said. “Bermuda and New York are among the leading centers of the insurance industry, and our willingness to cooperate as evidenced in this arrangement demonstrates our commitment to effective regulation. Indeed, we have recently been working together to protect AIG policyholders worldwide, and this arrangement formalizes the coordination and cooperation between us.”
Added Elderfield: “We are very pleased to have established this MOU with our colleagues at the NYSID. The BMA has already had a long-standing history of cooperation with the NYSID team. We have worked effectively together on matters involving insurance firms of mutual interest to our respective jurisdictions. Our most recent collaboration on firms within the financial guaranty sector impacted by sub-prime and matters related to AIG has underscored the need to ensure regulators can cooperate quickly and effectively in the global insurance market. We look forward to building on our existing positive working relationship with Eric and his team with this new agreement.”
Under the agreement, either regulator may request assistance from
the other, including obtaining information on a regulated person or entity. Either regulator may provide the other with investigative assistance with respect to companies and persons engaged in the business of insurance, including questioning or taking testimony and conducting inspections and investigations.
The agreement with officials in Bermuda is only the most recent for New York’s Insurance Department. Over the last year, it has entered into similar agreements with regulators in Germany and Taiwan, and is close to executing arrangements with others, the department said.
Originally reported by Insurance Journal.