As of January 1, 2015, the Pennsylvania Insurance Department has approved eight reinsurers as certified reinsurers and approved seven qualified jurisdictions. Business contracts with the certified reinsurers would require special statutory financial reporting considerations in a company’s annual filings. One of the listed certified reinsurers was the Underwriters at Lloyd’s of London.
Although, interesting to note, the Underwriters at Lloyd’s of London does not list a certified reinsurer identification number (CRIN) on the Pennsylvania Insurance Department website. As part of the certification process, each certified reinsurer was assigned an ID number to easily identify the specific reinsurer, referred to as a CRIN, which is especially helpful with the voluminous list of like named reinsurers.
Many of our client’s have reinsurance transactions with various Lloyd’s of London syndicates and BSSF wanted to gain further clarification to assist our clients. Based upon discussions with the Pennsylvania Insurance Department, the method of assigning CRIN’s for the Underwriters at Lloyd’s of London has not been concluded and will be addressed by the NAIC during 2015. Specifically, the NAIC Reinsurance Task Force will be addressing whether to issue a CRIN for each Lloyd’s of London syndicate or assign a CRIN to the specific Underwriters, which would then be applied to all Syndicates assigned to that Underwriter.
The NAIC has a “Listing of Companies”, which is a PDF coming in June 2015 (as a free resource!), and it will have added a CRIN column to the listing. According to the Department, at the present this is the ultimate source to specifically identify if a reinsurer is certified.
Therefore, we are recommending insurance companies download the NAIC “Listing of Companies” in June to verify if any of their reinsurers are identified as certified. Additionally, especially for companies having business with any Lloyd’s of London Syndicates, we recommend paying special attention to the meeting notes from the NAIC Reinsurance Task Force during 2015.
Our Property & Casualty (P&C) Insurance Group is available if you have any questions or concerns about this industry update. As an A.M. Best Ranked practice, the BSSF P&C Insurance Group is one of the largest in the Mid-Atlantic region to service the industry.
ABOUT THE AUTHOR
Scott A. Esworthy, CPA
Scott is a Principal with BSSF, specializing in the audits of property and casualty insurance entities (P&C) and employee benefit plans. His expertise in these areas extends beyond the Central PA region. Scott and his team serve clients in the Mid-Atlantic Region, with a focus in Pennsylvania, New Jersey, Maryland, Delaware, Virginia, Ohio, and New York.