Florida is at the forefront in modernizing insurance regulations by encouraging and attracting international reinsurance capital. With Florida’s
exposure to hurricane risk greater than any other state, it is important to take advantage of such concepts as reduced collateral for qualified companies.
The catalyst for such a change began prior to 2007, when reinsurance companies from outside the United States generally were required to post 100 percent
collateral to write reinsurance in the United States while U.S.-based reinsurers posted no collateral. The collateral requirement had been cited as a
barrier by foreign reinsurers to invest in Florida.
Following 2007 legislative action and subsequent rule-making in 2008, the Office of Insurance Regulation (Office) was allowed to establish lower collateral
requirements for non-U.S.-based reinsurers. These reinsurers had to be highly-rated and financially sound meeting stringent capital and surplus requirements.
In 2010, Florida signed the first agreement in the United States with an eligible non-U.S.-based reinsurer – Hannover Ruckversicherung AG, based in Germany.
There are now 23 certified reinsurers (formerly known as eligible reinsurers) operating in Florida. These certified reinsurers are based in Bermuda,
Germany, Switzerland, Ireland, or the United Kingdom, all of which are considered qualified jurisdictions.
Florida was also the first state to allow ceding insurance companies to receive full credit on their financial statements for reinsurance purchased from non-U.S.-
based reinsurers. Other states have since followed Florida’s lead and adopted similar provisions in their laws.
Effective July 2015, the designated maximum rating and corresponding collateral required is based on the certified reinsurer’s current lowest financial strength rating
assigned by the following rating agencies: A.M. Best Company, Standard and Poor’s, Moody’s Investors Service, Demotech, and Fitch Ratings. In conjunction with this
requirement, the certified reinsurer must obtain a financial strength rating from at least two of the acceptable rating agencies. For more information about the secure financial
strength rating, click here.
Applicants Seeking Certified Reinsurer Status:
Fidelis Underwriting Ltd.
Fidelis Insurance Bermuda Ltd.
Hamilton Re Ltd.
Filing & Reporting Requirements:
To locate information about reporting requirements, filing checklists and forms, visit: