New York State
Eric R. Dinallo Superintendent of Insurance 25 Beaver Street New York, N.Y. 10004
|ISSUED 06/12/2008||FOR IMMEDIATE RELEASE|
New York Insurance Superintendent Eric Dinallo (left) and Dr. Thomas Steffen, Chief Executive Director of Insurance Supervision for Germany’s financial regulator, the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), sign a memorandum of understanding allowing for closer cooperation between the two insurance regulatory authorities.
NEW YORK AND GERMAN INSURANCE REGULATORS SIGN COOPERATION AGREEMENT
New York State Insurance Superintendent Eric Dinallo and Dr. Thomas Steffen, Chief Executive Director of Insurance Supervision for Germany’s financial regulator, the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), today signed a memorandum of understanding (MoU) in New York allowing for closer cooperation between the two insurance regulatory authorities.
The MoU establishes a formal basis for consultation, cooperation and coordination between the BaFin and the New York State Insurance Department (NYSID), and provides for the exchange of information relevant to each authority’s supervisory, regulatory and examination responsibilities.
“In an increasingly global insurance market, regulators often work together to ensure policyholders are protected and the market is safe and vibrant,” Dinallo said. “This agreement recognizes the importance of the relationship between Germany and New York and allows us to cooperate to protect consumers and support the industry.”
Dr. Steffen said: “It is encouraging to see that insurance supervisory authorities in the US and in the EU member states are making good progress in establishing close working relationships. Today we have laid an important foundation for an improved informational infrastructure between supervisors which will benefit consumers, insurance undertakings and the overall financial stability.”
Under the MoU, either regulator may request assistance from the other, including in obtaining information on a 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 MoU commits the German and New York regulators to cooperating with each other in the interest of fulfilling their respective regulatory mandates and functions.
Negotiating the MoU for the NYSID were Deputy Superintendent and General Counsel Robert Easton and Supervising Attorney D. Monica Marsh. For the BaFin, negotiations were handled by Senior Advisor Michael Kehr.
About The New York State Insurance Department (NYSID)
The NYSID regulates all insurance business transacted in New York State and is the primary regulator for insurance entities domiciled therein. In its capacity as regulator, the NYSID administers, interprets and enforces the provisions of New York’s insurance laws and regulations, and is vested and charged with all rights, powers and duties as expressed or reasonably implied by the New York Insurance Law. Entities regulated by the NYSID have assets under management in excess of $4 trillion.
About the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
As the Federal Financial Supervisory Authority, BaFin supervises banks, financial services institutions and insurance undertakings as well as pension funds, investment funds and investment companies. Under the German Insurance Supervision Act, BaFin administers the supervision of insurance undertakings operating in Germany, which are of material economic significance, as well as pension funds and domestic companies engaging in reinsurance business. The scope of supervision includes all aspects of prudent supervision and good business conduct.
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