Hiscox Insurance Company (Bermuda) Limited (“Hiscox Bermuda”), a subsidiary of the international specialist insurer Hiscox Ltd (LSE:HSX) has announced that the Florida Office of Insurance Regulation has agreed to a reduction in its collateral requirements. Hiscox Bermuda will now have to post collateral of 20% of loss reserves rather than 100%, as was previously required.
Florida’s insurance regulator has adopted a policy of lowering the level of collateral required for alien reinsurers who are highly-rated and financially sound. This will both encourage new entrants into the market and make it a more attractive location to underwrite reinsurance business for the global reinsurance community. Hiscox is the fourth organisation to secure these reduced requirements.
Krystalle Tobin, Chief Financial Officer, Hiscox Bermuda said: “We are very pleased with the decision of the Florida Office of Insurance Regulation. This is a good example of forward thinking by the State of Florida to reduce collateral requirements on foreign reinsurers thereby making doing business with Florida insurers more attractive. I am optimistic that other US states will follow Florida’s lead.”
Source : Hiscox Press Release
