Two laws win the favor of state’s Insurance Commissioner
Two new laws have successfully passed the Connecticut Legislature, winning praise from the state’s Insurance Commissioner, Thomas Leonardi. Two legislations, which were signed into law by Governor Dannel Malloy this week, aim to bring more oversight to global insurance companies that operate in the U.S. and overseas. The laws are also meant to make Connecticut a more attractive venue for international reinsurance companies who wish to do business in the U.S. Commissioner Leonardi believes that the new laws signal major progress in the state’s position in the global insurance industry.
Regulators to participate in supervisory colleges
The first law (Public Act 103) grants the state’s Insurance Commissioner the authority to establish regulatory consortiums. These consortiums, called “supervisory colleges,” are to be comprised of domestic and international insurance regulators who will be tasked with analyzing the financial status of international insurance and holdings companies. The law allows regulators to monitor the financial impact that these international companies will have on domestic insurers. According to Commissioner Leonardi, the law will help regulators guard against negative economic trends.
Reinsurers to be reviewed by state and international regulators
The second law (Public Act 139) is designed specifically for the reinsurance industry. The law grants the Connecticut Insurance Department the authority to review the financial viability of international reinsurance companies as well as the domestic companies purchasing the policies offered by these reinsurers. The law is meant to enable reinsurance companies with a strong financial status to conduct more businesses in Connecticut and throughout the country.
Laws part of Connecticut’s role in international agreement from the IAIS
Commissioner Leonardi notes that the new laws will enable the state’s Insurance Department to play more of a supervisory role in the insurance industry. The laws are part of Connecticut’s role in an international agreement formed by the International Association of Insurance Supervisors, which aims to enable regulators to share financial information with one another no matter where they may be in the world.