New York State
Eric R. Dinallo Superintendent of Insurance 25 Beaver Street New York, N.Y. 10004
|ISSUED 09/29/2008||FOR IMMEDIATE RELEASE|
NEW YORK AND BERMUDA INSURANCE REGULATORS SIGN COOPERATION ARRANGEMENT
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 they have signed a memorandum of understanding (MoU) allowing for closer cooperation between the two regulatory bodies. The mandates of both agencies include insurance regulation.
The MoU establishes a formal basis for consultation, cooperation and coordination between BMA 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 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."
"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," Elderfield said. "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 MoU, 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 MoU commits the Bermuda and New York regulators to cooperating with each other in the interest of fulfilling their respective regulatory mandates and functions.
Recently, the Department entered into similar MoUs with the insurance regulators of Germany and Taiwan, and is close to executing arrangements with other regulatory authorities.
Negotiating the MoU for the NYSID were Deputy Superintendent and General Counsel Robert Easton and Supervising Attorney D. Monica Marsh. For the BMA, negotiations were handled by Director of Legal Services and Enforcement William Kattan and Legal Counsel Dina Wilson.
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.
the Bermuda Monetary Authority
The Bermuda Monetary Authority (BMA) is the integrated regulator of the financial services sector in Bermuda. Established under the Bermuda Monetary Authority Act 1969, the BMA supervises, regulates and inspects financial institutions operating in or from within the jurisdiction. The BMA has statutory responsibility for the supervision and regulation of financial institutions including insurance companies and insurance intermediaries in Bermuda.
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