Connecticut Insurance Commissioner Thomas Leonardi announced this week that the Connecticut’s insurance department entered into its third cooperative agreement with a European financial regulator — the second in the last three months — to allow for closer supervision of a regulated insurer doing business in both jurisdictions.
Connecticut’s insurance department finalized its latest memorandum of understanding on December 9 with the German Federal Financial Supervisory Authority (also known as BaFin), a federal entity that supervises banks, insurers and other financial services institutions.
“The financial stability of insurers — domestic and foreign-based — is paramount for consumer protection. Working closely with our fellow regulators around the globe gives us another essential supervisory tool,” Commissioner Leonardi said. “Mutual supervision is critical to ensure a robust market and to hold carriers accountable to all their policyholders.”
As a result of the agreement, both regulatory agencies may request assistance from the other and that includes obtaining information on a regulated company or individual.
Connecticut insurance regulators forged a similar agreement with Swiss Financial Market Supervisory Authority (FINMA) in September and also has a memorandum of understanding with De Nederlandsche Bank, N.V, the financial regulator for the Netherlands.
Connecticut insurance department has also applied to be a signatory to the International Association of Insurance Supervisors Multilateral Memorandum of Understanding on Cooperation and Information Exchange, which currently includes 21 non-U.S. jurisdictions.
Source: State of Connecticut Insurance Department
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