The Florida Office of Insurance Regulation (Office) has entered into a new agreement to support foreign reinsurance companies join Florida’s marketplace. The goal is to recruit reinsurers to conduct business in Florida by reducing collateral requirements for qualified companies.

The Office said that it has reached into an agreement with Hannover Ruckversicherung (Hannover Re) to qualify as state’s first reinsurer to capitalize on the terms addressed in Section 624.610(3)(e), Florida Statutes.

According to Office, currently, over 90% of reinsurance for Florida property insurance is provided by reinsurance companies located in foreign countries.

Kevin McCarty, insurance commissioner of Office, said: “Reaching an agreement with one of the world’s largest reinsurers is a significant accomplishment. Modernizing insurance regulations to attract additional capital is good for competition, and good for the Florida insurance marketplace.

“Florida is the first state to take advantage of this concept, which will make our state a national leader in attracting international reinsurance capital.”