21 May 2015Law & regulation

Delaware signs IAIS agreement

Delaware has become the latest signatory to join an international supervisory cooperation and information exchange agreement.

Since the first jurisdiction was admitted in June 2009, membership in the International Association of Insurance Supervisors (IAIS) multilateral memorandum of understanding has grown to include 51 signatories representing more than 63 percent of worldwide premium volume.

The memorandum is a global framework for cooperation and information exchange among insurance supervisors, which sets minimum standards to which signatories must adhere.

Felix Hufeld, chair of the executive committee of the IAIS, said: “We are glad to welcome Delaware as a signatory to the MMoU and to see the number of US signatories continue to increase. In order to achieve our ultimate goal of policyholder protection within the global insurance marketplace, an insurance supervisor needs the ability to cooperate quickly and effectively.

“The MMoU is an essential regulatory tool – not only in crisis situations, but on a day-to-day basis – for supervisors to foster safer and more stable insurance markets, and the IAIS encourages each of its Members to become a MMoU signatory.”

Karen Weldin Stewart, Delaware Insurance Commissioner, added: “The Department of Insurance is excited to be admitted as a signatory to the MMoU, because so many insurance companies domiciled in Delaware today conduct business around the world.

“Effective communication and cooperation with other global regulators is essential when advocating on behalf of our consumers. I look forward to working with other IAIS MMoU members to strengthen our regulation and supervision of the global insurance marketplace.”