Hiscox Insurance Company (Bermuda), a subsidiary of the international specialist insurer Hiscox, has been awarded Certified Reinsurer status by the New York Department of Financial Services.
According the certification, Hiscox Bermuda will now be permitted to post collateral of 20% of loss reserves rather than 100%, which was a condition previously.
New York is among the US states to reduce collateral requirements for non-US reinsurers that are highly rated and financially sound, with the intention of increasing available reinsurance capacity for US cedants.
Earlier in October 2010, the Florida insurance regulator permitted Hiscox Bermuda to reduce its collateral requirements.
Hiscox Bermuda chief financial officer Krystalle Tobin said reducing collateral requirements improves the reinsurance market for local insurers looking for more capacity and choice.
"With the National Association of Insurance Commissioners (NAIC) recently passing the credit for reinsurance model law changes, we are optimistic that other states will move to implement similar reduced collateral requirements," Tobin said.