N.Y. Gov. Paterson Supports Easing Rules for Foreign Reinsurers

New York will ease regulatory barriers that are “openly discriminating” against foreign reinsurers, Democratic Gov. David Paterson told reporters.

Paterson, the state’s first black governor, who is also legally blind, joked when describing the complaints of insurers with whom he met: “If I had closed my eyes, I would have thought I was talking to black people.”

Italian, Irish and British insurers want regulatory barriers lowered, he said.

“New York is regulating itself out of the global market, being overtaken by India and China,” Paterson said, adding that companies “feel we are blocking Asian and South Asian and Middle Eastern firms now competing with financial centers in New York and London.”

New York’s insurance department is a top rule-maker. “We’ve got to clear this up across the board,” Paterson said.

Insurance Superintendent Eric Dinallo told Reuters that this year, the state probably will ease rules requiring foreign reinsurers to post collateral, which should bring in more foreign companies and drive down insurance rates.

Topics New York Reinsurance