Lloyd’s gets go-ahead from New York regulator to post reduced collateral

Lloyd’s has received approval from the New York Insurance Department to post reduced collateral on reinsurance contracts.Lloyd’s is approved as a Secure-3 reinsurer, meaning its collateral requirements will be reduced from 100% to 20%, a Lloyd’s release says.”Foreign insurers play an important part in supporting the U.S. insurance industry and the steps taken by some individual states to reduce collateral requirements are to be welcomed,” said Sean McGovern, Lloyd’s director of North America.”However, our goal remains the complete and consistent removal of discriminatory collateral requirements in the U.S.”