Friday, June 13, 2008

New York, German Regulators Ink Cooperation Deal

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), have 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.

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